Why Did Clinton Allow The Government To Enter The Subprime Mortgage Business?
by Mortgage Rates on Wednesday, September 22nd, 2010 | 8 Comments
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Ever hear of Whitewater?
did you know that clinton is not the president anymore? that was 7 years ago.
I really do not know but I know chuch schumer wants ny tax payers to bail out the delinquent account holders in the state of NY. Funny how quickly we should all forget what the Democrats are doing with their authority but never cease to look for what is really going on with Republicans…
So maybe it is just to drive the prices of housing down while still being able to bail out voters, thats my guess.
Why did he get us in NAFTA? There are dozens of whys for every President. The question should be how to we prevent them in the future? I think the American people should have more chances to vote and the people we hire to represent us, should. Most of our senators don’t even know how the people feel, they vote however they want. Don’t you think it would be nice to have someone represent you in our government?
To allow more Americans to buy a home.
Fannie Mae and Freddie Mac were both created on the principle of making home ownership easier. This was an extension of their mission.
Subprime loans is not necessarily bad. They carry a higher risk of default and, as with any riskier investment, should carry a higher rate. If graded properly, the rate of default should be offset by the increased rates in the aggregate.
The root cause of the Subprime crisis goes back to how loans are graded, bundled and re-sold on the secondary market. This provided a ready market for shady loan brokers during the housing boom to ‘launder’ their product of questionable loans.
Sub-primes should be allowed to continue. But the system for grading loans, and the prosecution of shady loan brokers, should be substantially improved.
Re: Your Clinton reference
This subprime crisis was obviously a failure of *current* regulatory bodies.
You are not doing democracy any favors when you deflect responsibility and accountability of those in power.
Well, we have blamed Bill for everything else, why not the Mortgage problems. Hey, if Bill is really at fault, then we should make him pay all those sub-prime mortgage payments that are past due. Why don’t you try to enforce this idea? No B##s?
I felt compelled to respond to this question, not because the premise is sound (it isn’t), but because Gray Shadow posted such a solid answer.
I’m a REALTOR and have been involved in the Mortgage Lending industry as well and find it refreshing that someone actually understands how mortgages work.
Actually, Fannie Mae and Freddie Mac were commissioned by the federal government to OPEN UP the market and represent the beginnings of the need for “sub-prime” products in order to make housing available outside “conventional” vehicles.
To the best of my knowledge, Freddie Mac has never purchased or “passed through” B paper loans, and I’ve never heard of “C” loans. I’m not sure what the asker is referring to here.
The real crux of the current mortgage crisis exists, not in sup-prime loans themselves, but in the predatory lending and investing practices exercised by unscrupulous real estate professionals at every step. This includes real estate agents, mortgage lenders, appraisers and in some cases underwriters.
There’s one more culprit we can’t overlook. Seminar scammers. There were thousands of seminars everywhere “teaching” average people how to “get rich in real estate”. These charlatons “taught” thousands of people to break the law, lie to lenders and real estate agents, defraud sellers, buyers and every other principal involved in a transaction. The resulting “super-heating” of several markets created false valuation and inflated comparatives.
The end result is that tens of thousands of people now hold mortgages on homes for more than the homes are worth. Refinancing their way to solvency is not possible so forclosures are at an all time high.
I have little use for Bill Clinton, but he can’t honestly be blamed for this one.
i dont know but this whole mess is obviously his fault.