Do they really think we're going to let them get away with this????
There had better be MAJOR changes and conditions in this "Buy In" "Bailout" bill today.
I want to see Fannie and Freddie hang out all their dirt. Their "House of Cards" needs to fall -- for ALL to see. This "Bill" cannot possibly pass without naming some names first.
July ,08 - The DailyReckoning:
Fannie and Freddie - Playing with a stacked deck.
Fannie and Freddie spent $170 million on lobbyists," is the report from AP......
What did you expect? They were no angels. They knew it didn't hurt to have friends in high places - not when you were in such a compromising relationship. Friends in Washington come at a price…but the two mortgage companies had the deepest pockets in town - generously paying fees and expenses for a long list of former members of Congress and Capitol Hill hacks. The $170 million paid to lobbyists was just the beginning. Executives of the firms were also among the biggest contributors to political campaigns and to politicians' pet programs and vanity charities.
What a glorious scam! The two pretended to be important parts of private enterprise…partaking in the grand scheme of risk/reward along with all other capitalist businesses…but they had the world's biggest government standing behind them all the time; it was all reward and no risk, right from the beginning. Fannie and Freddie could funnel millions in profits from homeowners to politicians…and then, when they got into trouble, lay the losses onto shareholders and taxpayers.
Some Fannie history......
Franklin Delano Roosevelt, whose family had made a fortune in the opium trade, promised the nation a "New Deal" during the Great Depression of the '30s. But what he gave it was more like the old false shuffle. The president pulled cards from the bottom of the deck, pretending that government bureaucrats could do a better job of allocating capital than private investors. In 1938, he set up the Federal National Mortgage Association, b.k.a. Fannie Mae. Then, as now, the national housing market was in crisis. House prices had been declining for almost a decade. Who wanted to lend money against falling collateral values? Only a fool…or a government.
For the next 32 years, the firm resembled a nationwide savings and loan institution -- borrowing from large institutions and lending to smaller ones, keeping a piece of the spread for its trouble. But Fannie Mae was an imposter from the get-go. Lenders knew that it had something no free market business ever had - the full faith and credit of the US government behind it. Fannie was able to borrow at below-market rates; lenders knew they had no risk of losing their money in a default or bankruptcy. Fannie, with the aces dealt her by the Roosevelt administration, dominated the business for the next 30 years.
I am so sick and tired of hearing about the subprime and credit markets and the "people who should have know better" crapola. They aren't even a drop in the bucket. We're not talking huge amounts of money here anyway folks. We're not talking new homes being built for low income families. I still can't believe people are still falling for this kind of reasoning: Guess again who's to blame for U.S. mortgage meltdown Analysts point not to greed, but to social activist politics
Here's how they manipulated EVERYTHING........
2.7 Billion in housing initiatives that will help more than 333,000 low- and moderate-income families own their own homes.
The report identifies the multiple barriers to homeownership faced by minority families and outlines steps the Bush Administration is taking to eliminate them, including a total of $2.7 billion in housing initiatives that will help more than 333,000 low- and moderate-income families own their own homes.
Great program - I helped a lot of folks get their first home under these programs. They had to take a lot of classes to understand what was involved in homeownership. It worked nicely.
December 16, 2003 - President Bush Signs American Dream Downpayment Act of 2003
Last year I set a goal to add 5.5 million new minority homeowners in America by the end of the decade. That is an attainable goal; that is an essential goal. And we're making progress toward that goal. In the past 18 months, more than 1 million minority families have become homeowners. (Applause.) And there's more that we can do to achieve the goal. The law I sign today will help us build on this progress in a very practical way.
Many people are able to afford a monthly mortgage payment, but are unable to make the down payment. So this legislation will authorize $200 million per year in down payment assistance to at least 40,000 low-income families. These funds will help American families achieve their goals, and at the same time, strengthen our communities.
And there's more to do, as well. We'll continue to pursue a broad agenda to help people own a home. There are three steps I want to describe to you right quickly about what we intend to do. First, those who apply for mortgages should be made aware of all the costs and warned about predatory lenders who take advantage of inexperienced buyers. So we've doubled the funds for housing counseling services, including those run by faith-based and community groups.
This administration will constantly strive to promote an ownership society in America. We want more people owning their own home. It is in our national interest that more people own their own home. After all, if you own your own home, you have a vital stake in the future of our country. And this is a good time for the American homeowner. Today we received a report that showed that new home construction last month reached its highest level in nearly 20 years. (Applause.)
The reason that is so is because there is renewed confidence in our economy. Low interest rates help. They have made owning a home more affordable, for those who refinance and for those who buy a home for the first time. Rising home values have added more than $2.5 trillion to the assets of the American family since the start of 2001.
The rate of homeownership in America now stands a record high of 68.4 percent. Yet there is room for improvement. The rate of homeownership amongst minorities is below 50 percent. And that's not right, and this country needs to do something about it. We need to -- (applause.) We need to close the minority homeownership gap in America so more citizens have the satisfaction and mobility that comes from owning your own home, from owning a piece of the future of America.
SO TELL ME WHY DO WE NOW ANNOUNCE THIS TO THE HOME BUILDERS SHOW IN LAS VEGAS???????
The housing market it HOT!! Remember all those radio and tv ads? Best time to buy - hurry before rates rise - lowest rates in 30 years!!
In announcing the plan Monday at a home builders show in Las Vegas, Federal Housing Commissioner John Weicher called the proposal the "most significant FHA initiative in more than a decade." It would lead to 150,000 first-time owners annually, he said.
In a bid to boost minority homeownership, President Bush will ask Congress for authority to eliminate the down-payment requirement for Federal Housing Administration loans.
All I saw in the early 2000's were all these McMansions going up all over the place. Where's all the affordable housing. Fannie? Freddie? Where's all this down payment assistance? Doesn't even compare folks - we're talking first time buyers who bought properties in the city for $150,000 average -- hardly could have taken the whole economy down.
Fact Sheet: The Mortgage Forgiveness Debt Relief Act of 2007
Congress needs to pass legislation to reform Government Sponsored Enterprises (GSEs) like Freddie Mac and Fannie Mae. GSEs provide liquidity to the mortgage market that benefits millions of homeowners, and it is vital that they operate safely and soundly. The President has called on Congress to pass legislation that strengthens independent regulation of the GSEs and ensures they focus on their important housing mission.
Fannie and Freddie have NEVER acted safely and soundly.
WAKE UP PEOPLE - It's time to get names
Call your senators
Fannie Mae could pick the taxpayer's pocket twice - once by sticking him with a mortgage he couldn't really afford and a second time by raiding the taxpayers' vault for a bailout.
In the case at hand, by the year 2007, the CEOs of Fannie and Freddie were earning salaries that would have been respectable, even on Wall Street. Fannie's main man, Daniel Mudd took home $13.4 million in 2007, a year in which the firm lost $2.1 billion. While the Freddie Kruger of mortgage finance, Dick Syron, pocketed $18.3 for helping Freddie Mac to a $3 billion loss and a 33% trim for the shareholders.
As recently as May of this year, Mr. Mudd told the New York Times that he was "seeing the best opportunities since I've been in this business." Two months later, both Fannie and Freddie are "insolvent," says former Fed governor William Poole.
In a better world, Mudd and Syron would be hanged…and the bondholders would be wiped out along with the shareholders. But last Sunday, U.S. Treasury Secretary Henry Paulson announced a bailout. And on Monday, an auction of Freddie Mac debt was oversubscribed. The Russians were right; the deck was stacked from the very beginning.
From NPR - The Fannie And Freddie Bailout, In 10 Easy Links