Libs caused the Housing Collapse-They forced the lowering of lending standards

[Roadwarrior]

Another total Media Blackout of the Truth

This irresponsible lending was also a response to McCarthyite
libels and shakedowns against the banks called "red lining" ...

This was an affirmative-action program gone bad. IMO.

---------------------------------------------------------------
http://worldnetdaily.com/index.php?fa=PAGE.view&pageId=75717
------------------------------------------------------------------------


Liebowitz puts forward an explanation that he admits is "not consistent with the nasty-subprime-lender hypothesis currently considered to be the cause of the mortgage meltdown."

In a nutshell, Liebowitz contends that the federal government over the last 20 years pushed the mortgage industry so hard to get minority homeownership up, that it undermined the country's financial foundation to achieve its goal.

"In an attempt to increase homeownership, particularly by minorities and the less affluent, an attack on underwriting standards was undertaken by virtually every branch of the government since the early 1990s," Liebowitz writes. "The decline in mortgage underwriting standards was universally praised as 'innovation' in mortgage lending by regulators, academic specialists, (government-sponsored enterprises) and housing activists."
He continues, "Although a seemingly noble goal, the tool chosen to achieve this goal was one that endangered the entire mortgage enterprise."

"As homeownership rates increased there was self-congratulation all around," Liebowitz writes. "The community of regulators, academic specialists, and housing activists all reveled in the increase in homeownership."

An article in the Los Angeles Times from the late '90s praised the sudden surge in homeownership among minorities, calling it "one of the hidden success stories of the Clinton era."

John Lott, a senior research scientist at the University of Maryland, however, claimed in a Fox News article yesterday that the success came at a great price.

According to Lott, the Federal Reserve Bank of Boston produced a manual in the early '90s that warned mortgage lenders to no longer deny urban and lower-income minority applicants on such "outdated" criteria as credit history, down payment or employment income.

Furthermore, claims Lott, Fannie Mae and Freddie Mac encouraged and praised lenders – like Countrywide and Bear Stearns – for adopting the slackened policies toward minority applicants.

"Given these lending practices mandated by the Fed and encouraged by Fannie Mae and Freddie Mac," writes Lott, "the resulting financial problems for financial institutions such as Countrywide and Bear Stearns are not too surprising."

[cjd]

The sad fact of the matter is that we are slowly going down a path of government mandated socialism. Whats the point of working your butt off if government is going to come along and take away half or more of what you earn and give it to a set of filthy slacking animals. Here you work your self to death to earn enough money for a down payment on a nice home and before you know it Sambo or Juan Valdez who never worked two days in a row moves in next door to make your life a living hell. Soon on top of the 50% the government takes you will have to flee your home selling it for pennies on the dollar because no human would want to buy it because of what the neighborhood has turned into. This is what our government has become under a liberal majority.

[~Hanna~]

The sad fact of the matter is that we are slowly going down a path of government mandated socialism. Whats the point of working your butt off if government is going to come along and take away half or more of what you earn and give it to a set of filthy slacking animals. Here you work your self to death to earn enough money for a down payment on a nice home and before you know it Sambo or Juan Valdez who never worked two days in a row moves in next door to make your life a living hell. Soon on top of the 50% the government takes you will have to flee your home selling it for pennies on the dollar because no human would want to buy it because of what the neighborhood has turned into. This is what our government has become under a liberal majority.

 

It's either laugh or cry, with me....

I can relate to this.....

But I'm moving.........

[briann]

I wish someone would get the word out on this.  This is why the government should NOT be in the business of housing... they absolutely destroy it.

[דוד בן זאב אריה]

Yes it was the afermiative action of giving loans to [censored] and Hispanics that couldn't pay them back. We have to be fair they'd say