Did President Clinton cause the mortgage crisis because he mandated that the poor get these “bad” loans?

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I’m not bashing a side, I’m seeking the truth.

21 Comments
  1. Reply
    Louis666KWu
    May 15, 2011 at 2:11 am

    No. And you don’t have a link for your lie, do you?

  2. Reply
    Antiliber
    May 15, 2011 at 2:29 am

    Clinton was only one factor that has caused this collapse … It is The Government that is to blame … Democrat and Republican alike

  3. Reply
    Democrat4aDay
    May 15, 2011 at 2:47 am

    Both Clinton and the Republican controlled Congress. Both parties are involved over their heads in this NO BAILOUT!

  4. Reply
    Greg B
    May 15, 2011 at 3:39 am

    The Republicans run the show for 8 years and you are still reaching that far back to blame it on Democrats. Amazing.

  5. Reply
    ynot
    May 15, 2011 at 4:10 am

    Yes It reminds me of Lydon Johnson great society which has led to generations of blacks entangled in the welfare and dependency culture. it also reminds me of the statement The road to hell is paved with good intentions.

  6. Reply
    nelsdevs
    May 15, 2011 at 4:55 am

    Right…because inflation couldn’t possibly have anything to do with that…

  7. Reply
    Holy Cow
    May 15, 2011 at 5:24 am

    No.

  8. Reply
    Mike
    May 15, 2011 at 5:27 am

    Your premise is false.

    Bill Clinton did not mandate that poor people get these bad loans.

    However when Barack Obama was a “community organizer” shakeodwn artist, Obama and his thugs accused lenders of not racism for not giving loans to the poor who could not repay those loans.

    If anything Barack Obama and his street thugs are responsible for shaking down lenders and intimidating them into making bad loans that they would not otherwise have made.

    Barack Obama has much more to do with the bad loans than Bill Clinton.

  9. Reply
    Calla
    May 15, 2011 at 6:07 am

    Well he was a part of it, but he was not the only cause of the problem.

  10. Reply
    Stay Away From The Dark Side
    May 15, 2011 at 6:25 am

    Yes and Obama and the rest of the democrats in Congress pushed them mortgage companies to give loans to the people with bad or no credit- they thought it would solve the housing crisis! DUMB! Loans DO NEED TO BE PAID !

  11. Reply
    Patrick
    May 15, 2011 at 7:23 am

    Yes, I was VP of a National Mortgage Banking Corp. and delt directly with Fannie and Freddie as well as several banks and we discussed that this would happen back when Clinton was putting these rules into play. It’s common sence and simple economics. Clinton set this up to be a redistribution of wealth and that is exactly what will happen. Bush tried at least 12 times to investigate the illegal activity of Fannie and Freddie and it was blocked by the Democrats every time. Democrat Chris Dodd has received the most money from Fannie and Freddie, Democrat Obama comes in second though if you only look at the time Obama has been in office he’s received by far the most money. Why is a quasi-gov’t agency that takes tax payer’s money allowed to give millions of dollars to the Democrats that over see (in this case protect from prosecution) their organization?

  12. Reply
    Craig C
    May 15, 2011 at 7:45 am

    Basically. The government, once again, stuck its nose in where it didn’t belong because it felt that everybody deserves to own a home, whether they could afford it or not. This lead directly to the sub-prime mortgage industry taking off. There was definitely greed involved on the banks part as well but if the government hadn’t mandated it the banks never would have done it.

    Why would you knowingly give out a loan that you knew would be bad for business unless you had to?

  13. Reply
    Veritatum17
    May 15, 2011 at 8:04 am

    No, there was no such mandate. The deregulation happened while he was president, but I am loathe to give any president credit or blame for the economy.

    This was a good idea at the time – more lower income families were homeowners than ever before.

  14. Reply
    Reagan '08
    May 15, 2011 at 8:24 am

    Yes, it was the Clinton Administration changes of 1995 to the Community Reinvestment Act. However, republicans let it pass as well. Both parties are at fault, but the Clinton Administration urged for it. The revisions, went into affect on January 31 in 1995 and they were to increase the number of loans to small businesses and to low and moderate-income borrowers for home loans. Word for word. There it is.

    Then, in 2003, Bush tried to reform the Act by implementing his own changes to correct Clinton’s screw up but it was turned down. Bush’s change was to move governmental supervision of two of the primary agents guaranteeing subprime loans, Fannie Mae and Freddie Mac under a new agency created within the Department of the Treasury. Then again in 2006, McCain urged Bush and the Congress to pay attention to Fannie Mae and Freddie Mac however the Congress failed to implement McCain’s plea for regulation.

  15. Reply
    bassdoc
    May 15, 2011 at 9:17 am

    This is reaching WAY back, and anyway the bill was written by 3 Republicans, and Clinton signed it be bipartisan so to blame it on him is just ridiculous.
    And Bush had 8 years to change it and never did, just like he never did anything about radical Islam until after 911 happened.

  16. Reply
    LR
    May 15, 2011 at 9:47 am

    No, the loans were not mandated by President Clinton. They were made because corporate officials were greedy and took advantage of people wanting their share of the American dream. They charged rates of interest that started out as manageable but soon escalated to the point they knew these people couldn’t pay, placed fees on the loans that would have never been charged on a traditional borrower, inflated incomes and appraisals, etc. Then they bundled the loans and sold them to unsuspecting middle class investors who didn’t realize these were not traditional loans and who are the ones who often will stand the loss as these loans fail while the corporate officials happily scamper off with huge payouts, leaving the corporations an empty shell.

  17. Reply
    kerfitz
    May 15, 2011 at 9:59 am

    No… as with most issues there is more than enough blame to go around for both parties. The Democrats forced mortgage companies to offer loans to those that did not meet the lending criteria. Republicans deregulated the industry, letting them go to town. The corporate heads used that freedom to offer loans in excess of what borrowers could afford in a greedy attempt to thier stockholders and their own pockets. The surge in gas prices forced people that were barely making ends meet (because of their own stupidity in taking loans of property they couldn’t afford) to default on thier mortgages. It was a confluence of things that led to this, not just ONE individual or party.

  18. Reply
    ShadowCat
    May 15, 2011 at 10:52 am

    Yes he did But There’s Plenty of “Blame Pie” to go around for Both Parties and The Lobbyists that are Well Paid! Ineffective regulation of the Banks is the other The Last Factor occurred this year when Congress removed every Protection, Consumers had and Have allowed Predatory Lenders to do as they please. They can change the terms and Increase Interest rates after you sign an agreed rate of interest. Lenders can also and charge Exobatant interest rates in excess of 33%.

    Remember the First Influx of Illegals when the gettin’ was good? They got the Majority of those loans and to add fuel to the fire was Identity theft committed by them. The Creditors Did Nothing About it, except Expect for you to pay it After they Ruin your Credit! Add to that mix the Fact that Congress Recently Repealed Every Law that Protected Consumers. There you have it, A Financial Disaster!

    I say Let them All Suffer without Bail OUTS and Close the Borders and Deport the Rest!

  19. Reply
    ColleenIsBack
    May 15, 2011 at 10:56 am

    If you think that the cause of this crisis is just some lending in minority areas, then you don’t know squat about the crisis.

    What is at the heart of the crisis is the market for credit default swaps and other exotic derivatives that took mortgage and other debt and sliced them up and then were traded between brokerage houses, investmentment banks, insurance companies and the like. The firms took on risk that was many times the capitalization of their firms because these securities were completely unregulated. Fannie Mae and Freddie Mac are mere drops in the bucket compared to the amount of risk these people took. When the housing market went south the ripple effects were magnified many times over because of the risk taken in uninsured instruments, not because of Fannie and Freddie bonds.

    Stop listening to the natterings of right-wing radio hosts and cable TV talking heads that are trying to divert us from the real cause: Wall Street and insurance company execs that sought profit from taking more and more risk until the entire scheme imploded.

  20. Reply
    elitesouthwest
    May 15, 2011 at 11:12 am

    No..it was caused by greedy GOP rich folks in the banking , mortgage, insurance, construction,,and investment firms

  21. Reply
    myottaname
    May 15, 2011 at 11:21 am

    In a word…No. Blame has to be put exactly where it should…on greedy mortgage lenders selling sub-prime ARM mortgages. Their targets were lower income people looking to purchase a home and promised them the world. Enticements were lower ‘trial’ interest rates to make purchases seem more affordable then they were. In many cases, the lender would make promises of the ability to later change mortgages to a fixed rate with no penalties or fees, only to have the homeowner find out it wasnt’ true (a.k.a. lies)

    The next step of the greed of the mortgage companies were to sell these mortgages to another company. By doing this, the orginal company didn’t care if the loan was paid or not. They got their money back by selling to someone else to deal with it. And then it would be sold again….and again. They would wind up being repackaged in securites and banks from around the world would buy them up. (Many homeowners noticed if they called thier mortgage company, alot of times it was a foreigner they were speaking to) Many people would also lose track of who their mortgage company actually was after a while.

    Now, the trial rates expire on the ARM, and the interest shoots up to above the cost of living that the homeowner makes. A mortgage payment of say $ 1,000 a month could go up to $ 1,500, with most of the payment only going toward interest and not the principal of the home. On top of that, with the housing crunch, the homeowners $ 200,000 house is now worth $ 150,000. So the homeowner now has to come up with another $ 500 and still has not paid anything off of the house yet. Now the homeowner can’t afford it, when they could when they bought it and the house is worth less. Whichever mortgage company or securities firm was the last to buy the mortgage, now has a bad loan in their lap.

    The governments fault in this is no oversight. No regulation keeping these people (the mortgage companies) in check.

    Now, I’ve seen these ‘it’s Clinton’s fault’ messages all over the place. But the truth is, the changes those people were talking about were yes, signed by Bill Clinton, but were mitigated by republicans. Clinton was forced to sign into law changes that were passed by a republican controlled house and senate.

    Check out the links below to get a little more background.

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