Senate approves housing-rescue bill

I think we should name the housing bust and bailout after Clinton. His administration started it:

http://query.nytimes.com/gst/fullpage.html...

September 30, 1999
Fannie Mae Eases Credit To Aid Mortgage Lending
By STEVEN A. HOLMES

In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.

The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.

Fannie Mae, the nation's biggest underwriter of home mortgages, has been

UNDER INCREASING PRESSURE FROM THE CLINTON ADMINISTRATION

to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.

In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates -- anywhere from three to four percentage points higher than conventional loans.

''Fannie Mae has expanded home ownership for millions of families in the 1990's by reducing down payment requirements,'' said Franklin D. Raines, Fannie Mae's chairman and chief executive officer.''Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.''

Demographic information on these borrowers is sketchy. But at least one study indicates that 18 percent of the loans in the subprime market went to black borrowers, compared to 5 per cent of loans in the conventional loan market.

IN MOVING, EVEN TENTATIVELY, INTO THIS NEW AREA OF LENDING, FANNIE MAE IS TAKING ON SIGNIFICANTLY MORE RISK, WHICH MAY NOT POSE ANY DIFFICULTIES DURING FLUSH ECONOMIC TIMES. BUT THE GOVERNMENT-SUBSIDIZED CORPORATION MAY RUN INTO TROUBLE IN AN ECONOMIC DOWNTURN, PROMPTING A GOVERNMENT RESCUE SIMILAR TO THAT OF THE SAVINGS AND LOAN INDUSTRY IN THE 1980'S.

''FROM THE PERSPECTIVE OF MANY PEOPLE, INCLUDING ME, THIS IS ANOTHER THRIFT INDUSTRY GROWING UP AROUND US,'' SAID PETER WALLISON A RESIDENT FELLOW AT THE AMERICAN ENTERPRISE INSTITUTE.''IF THEY FAIL, THE GOVERNMENT WILL HAVE TO STEP UP AND BAIL THEM OUT THE WAY IT STEPPED UP AND BAILED OUT THE THRIFT INDUSTRY.''

Once again, the American taxpayer gets screwed. But, as long as the sheeple get to suck from the government teat everything is OK.

Interesting neither Obamby or McShame voted. Clinton and Chuckie 'Indy-Mac' Schumer voted yea.
In the House, Ron Paul voted nay.

Who cares! Didn't y'all hear Lindsay Lohan got run over by a bicycle?!

Oh, and by the way, it provides Uncle Sam with complete authority to snoop into your credit card receipts - all of them, 100% of them, everyone's. And if they merely have suspicion you aren't paying your taxes, they can simply have the card company freeze 28% of the money they transfer.

Why, you say you never heard about that provision in the news? Of course not!

Remember the 'good old days' when that part of the Constitution that forbade search and seizure without probable cause stood for something? Wave buh-bye, because it's taking a long trip, far far away.

On CNN today a woman spoke of her job paying $50 grand a year, not stated whether before or after deductions. She obtained two mortgages in order to purchase this home worth over $500 grand. Now they want to foreclose because she can't keep up the payments. She blames the broker and the realtor. Who signed the paperwork?! She did.

MomGrandma wrote:

On CNN today a woman spoke of her job paying $50 grand a year, not stated whether before or after deductions. She obtained two mortgages in order to purchase this home worth over $500 grand. Now they want to foreclose because she can't keep up the payments. She blames the broker and the realtor. Who signed the paperwork?! She did.

She is, no doubt, a Democrat voter...

problem is wrote:

<quoted text>
She is, no doubt, a Democrat voter...

Funny, ha-ha, but I do believe you are correct.

help I was a dumb sob who got a adjustable mortage when they were at 30 - 40 year. now i need the government to bail me out for my stupid mistake.

In NO WAY SHOULD THE GOVERNMENT BE RESPONSIBLE FOR STUPID FINANCIAL DECISIONS.

some of you people need to be kicked
in your ass
true some people souldnt have gotten homes but you no if you people took the time to read the newspapers or watch the news you would see

look at all the companies cutting jobs i mean people thats been at a company for 10- 15- even 20+ years and they are in trouble

airlines are cutting the auto industry is cutting the printers like quebecor world is really getting rid of people and shutting down plants all over

in these cases yeah i think people need help

but true not for those people who got mortages that really wasnt able to pay them ..... i feel for some of you i hope that you all have job security 'NOT' BECAUSE I THINK THAT THERE ISNT SUCH THING CALLED JOB SECURITY ANYMORE.......

different view wrote:

some of you people need to be kicked
in your ass
true some people souldnt have gotten homes but you no if you people took the time to read the newspapers or watch the news you would see
look at all the companies cutting jobs i mean people thats been at a company for 10- 15- even 20+ years and they are in trouble
airlines are cutting the auto industry is cutting the printers like quebecor world is really getting rid of people and shutting down plants all over
in these cases yeah i think people need help
but true not for those people who got mortages that really wasnt able to pay them ..... i feel for some of you i hope that you all have job security 'NOT' BECAUSE I THINK THAT THERE ISNT SUCH THING CALLED JOB SECURITY ANYMORE.......

There is never a shortage of crises.

At any given time there are always people who need help, but that is NOT the role of government.

Furthermore, to put things in perspective, the total estimated number of people who are possible facing foreclosure is around ONE-HALF OF ONE PERCENT of the population.

Approx 1.5 Million mortgage holders are having trouble. About 1/3 of these are invest properties - not home owners.

So, out of 300,000,000 Americans, 1,000,000 are having trouble making their payments.

There are approx 102,000,000 homeowners in America, so even looking at it that way, less than 1% of homeowners are possibly facing foreclosure.

I could go on and point out that every year aapprox 250,000 to 500,000 people face foreclosure, but I think I have made my point.

Fear is a weapon, and "the powers that be" use it to get you to give them more power of you.