This woman lied about being a native American so she didnt have to pay for her college education. She has no credibility. One of the reasons for the financial crisis of 2008 began as part of the credit crisis. The federal government and banks lending money to people which should have been considered unqualified borrowers. Leftist policies pushed by her Democrat party which told banks they were required to make these loans or face federal investigations / charges of discrimination if they refused...See below. forbes/.../how-the-government-created.../... Chapter 2 of the story is the “affordable housing” policies going back many years, spawned by liberals and progressives. These increasingly extreme and unbalanced policies began the housing bubble even before the Fed’s miscalculations starting in 2001. Moreover, because of these affordable housing policies, when the bubble burst, and housing prices stopped rising and started deep declines, the resulting damage was far worse. In the early 1990s, these liberal/left activists began using the Community Reinvestment Act and anti-discrimination housing laws to allege discrimination against housing lenders who maintained traditional lending standards that excluded borrowers who were not creditworthy. Their demands reached the point of insisting that lenders discount bad credit history, no credit history, no savings, lack of steady employment, a high ratio of mortgage obligations to income, undocumented income and inability to finance down payment and closing costs, while counting welfare and even unemployment benefits as income in qualifying for a mortgage. These unreasoned demands were imposed on financial institutions through overregulation, as HUD and Justice began threatening and even following through on discrimination suits, and bank regulators began downgrading institutions that refused to knuckle under. But the big breakthrough came when President Clinton got on board with what was effectively an official national policy of looting the banks. As Stanley Kurtz explained for National Review: “Finally, in June of 1995, President Clinton, Vice-President Gore and Secretary Cisneros announced the administration’s comprehensive new strategy for raising home-ownership in America to an all-time home high. Representatives from ACORN were guests of honor at the ceremony. In his remarks, Clinton emphasized that: “Our homeownership strategy will not cost the taxpayers one extra cent. It will not require legislation.” Clinton meant that informal partnerships between Fannie and Freddie and groups like ACORN would make mortgages available to customers “who have historically been excluded from homeownership.” In the end, of course, Clinton’s plan cost taxpayers an almost unbelievable amount of money.” Clinton expanded the looting to Fannie Mae and Freddie Mac, forcing them through regulatory fiat to massively increase funds for sub prime mortgages through their securitization practices. That securitization further spread severe damage once the housing bubble popped throughout the entire U.S. financial community, and beyond to financial institutions globally The big problem wasn’t caused just by loans to low income borrowers. The problem was that once lending standards were trashed for these borrowers, they couldn’t be maintained for more creditworthy borrowers. This let more well-heeled speculators in on the scam, now able to qualify for highly speculative mortgages they could not have qualified for previously. That vastly expanded the resulting credit risk vulnerabilities for the financial system, and vastly pumped up the housing bubble far more. And guess what? Subprime lending has begun again. Feds to Back Risky Home Loans Again Critics warn that Fannie and Freddie are setting up housing market for repeat of 2008 crisis freebeacon/.../feds-to-back-risky-home-loans.../ *Anons Rose* ~RJ~ SHARING POST….
Posted on: Tue, 11 Nov 2014 23:04:34 +0000
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