Fannie and Freddie's Reckless Lending Practices

"These two entities—Fannie Mae and Freddie Mac—are not facing any kind of financial crisis. The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing." Representative Barney Frank.(D)

FANNIE MAE and FREDDIE MAC DOWNGRADED:

The fallout from the nation's credit downgrade continued Monday (8/8/11), as Standard & Poor's announced government-sponsored housing giants Fannie Mae and Freddie Mac were also getting their top rating slashed. The two government-sponsored enterprises saw their credit rating from S&P fall from AAA to AA+ after the rater dropped the nation's rating to the same level on Friday. Raters have noted that the two government-sponsored enterprises' (GSEs) ratings are closely tied to the nation's, especially since the federal government brought the two under federal conservatorship during the 2008 subprime mortgage crisis.

"I don't see anything in your report that raises safety and soundless problems."

Barack Obama and NINJA loans.
One of Barack Obama’s tasks at ACORN, where he worked with Madeline Talbott, was teaching community activists how to use “direct action” and be more forceful in demanding change.

The “in your face” style preached by Barack Obama was used by activists to stage sit-ins and demonstrations at banks to garner publicity and support for more bank loans for (sometimes unqualified) poor people.

(ACORN staged a two-day sit-in at the House Banking Committee room in 1991.)

ACORN Tactics included picketing at the homes of bank executives and calling them racists for not lending to the poor.

Among the banks targeted by Talbott and Barack Obama was Chicago’s Bell Federal Savings (which no longer exists).

The Chicago Tribune, in September of 1992, referred to the ACORN agenda as “affirmative action lending.”

Critics later refer to those types of mortgages as “Ninja” loans (“No Income, No Job, No Assets”) or “liar’s loans,” because the bank takes the applicant’s word for his stated income, assets, and job stability without verification.

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Related Post: Housing Boom and Bust - The Current Economic Disaster
Related Post: Dr. Thomas Sowell - The Dismantling of America
Related Post: Affirmative Action and Socializing the Big Three

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