Why did Bush order his appointees at freddie mac to make 440 BILLION in subprime loans to minorities?

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Here is a link to george bush’s official website/press releases at the national archives. http://georgewbush-whitehouse.archives.gov/news/releases/2002/06/20020617.html

On june 18, 2002 bush gave a speech in atlanta and in his words “pledges to use the mighty muscle of the federal government to increase minority home ownership by 5.5 million homes.”
He then requests his appointees at freddie mac to make 440 BILLION in sub prime loans to minorities, or 20 times the amount that democrat presidents had requested”

Here is from bush’s official press release in the link: Today, President Bush announced a new goal to help increase the number of minority homeowners by at least 5.5 million before the end of the decade. The President’s aggressive housing agenda will help dismantle the barriers to homeownership by providing down payment assistance, increasing the supply of affordable homes, increasing support for self-help homeownership programs, and simplifying the home buying process & increasing education. The President also issued “America’s Homeownership Challenge” to the real estate and mortgage finance industries to join in his effort to increase the number of minority homeowners by taking concrete steps to tear down the barriers to homeownership that face minority families.

Why did bush order 440 billion in loans to high risk people? Did you know his campagin finance chairman owns the biggest homebuilder – ryland homes – and another top donar owns the largest subprime mortgate broker in the usa. And don’t forget his cousin, herbert walker, ran the credit default insurance scams at goldman sachs.

Looks like all of bush’s buddies got filthy rich from the 440 billion he ordered. Do you agree?

Source: Business Week Online

In early 2007, as overextended borrowers began to default on too-good-to-be-true subprime mortgages, housing experts sounded an alarm heard throughout Washington. Christopher Dodd (D-Conn.), chairman of the Senate Banking Committee, wanted to push a bill requiring banks to modify loans whose enticingly low “teaser” interest rates soon give way to tougher terms. But he knew that with Republicans strongly opposed, he lacked the muscle, according to Senate aides. So Dodd did what politicians often do. He convened a talkfest: the Homeownership Preservation Summit.

A who’s who of banking executives gathered on Apr. 18, 2007, behind closed doors in an ornate hearing room in the marble-faced Dirksen Senate Office Building. Dodd told them they needed to get out in front of the foreclosure fiasco by adjusting loan terms so borrowers would continue to make some payments, rather than stopping altogether. Foreclosure proceedings typically cost banks about 50% of a property’s value. That’s assuming the home can be resold — not a certainty when empty houses multiply in a neighborhood. “What are you doing?” Dodd asked the executives. “What do you need me to do to help you modify loans?”

http://news.yahoo.com/s/bw/20090213/bs_bw/0908b4120034085635

Is this why Republicans constantly vilify Christopher Dodd, because he’s actually trying to fix the problem?
“Senate Banking Committee spokeswoman Kate Szostak says Dodd aggressively pursued the foreclosure issue, but “both the industry and the Bush Administration refused to heed his warnings.””

20 Comments
  1. Reply
    No no no
    April 29, 2011 at 9:09 pm

    And you see why the government getting involved in every aspect of our lives is bad?

  2. Reply
    Dilligas
    April 29, 2011 at 9:33 pm

    Carter and Clinton, not Bush

  3. Reply
    eyescrazychris
    April 29, 2011 at 10:02 pm

    Because the greedy officials in the senate and congress held him hostage to pay off their constituents

  4. Reply
    Just "B" Free
    April 29, 2011 at 10:55 pm

    It was a political pay off to the left for their support of Iraq war funding. Bush actually tried to rein in both Fannie and Freddie in 2001 but was stonewalled. In a political payoff he caved into the Democrats demand for more sub prime loans for minorities.

  5. Reply
    ziggurat4u
    April 29, 2011 at 11:04 pm

    he succumbed to the pressure of the democratically led congress that controlled the purse strings of our country (remember; it’s congress that approves funding for any initiatives…not the executive branch). He made a big mistake signing on to Democrat Barney Frank’s initiatives.

    Now, Obama has tripled our deficit in 4 months (far more than Bush did in 8 years and the previous 43 presidents combined). I’m sick of all liberal spenders…doesn’t matter if they call themselves republicans or democrats. IT”S WRONG.

  6. Reply
    smsmith500
    April 29, 2011 at 11:53 pm

    And at the time the Democrats had nothing but good words to say about it and supported the measure in congress. No money gets spent without the approval of congress. Try checking the Constitution before you post.
    Oh really I have seen quite a few Democrats get “filthy rich” from what Freddie Mac and Fannie mae did. Did you see who runs the committee that oversees those groups, his boyfriend most definitely got rich.

  7. Reply
    Buzz Kill
    April 30, 2011 at 12:31 am

    There is NO WAY a conservative will answer this!

  8. Reply
    Steven J
    April 30, 2011 at 12:46 am

    True he did play a part in the sub prime mess.

    But you’ll never hear it from a republican, or about his bogus war, his massive deficits, his bailout plan to turn this country into a socialistic government, or the rest of his failures especially 9/11. Somehow it is the democrats fault.

  9. Reply
    Bad Andy
    April 30, 2011 at 1:32 am

    Because Bush was never a conservative and he kissed minority butt. Thank you for bringing this out.

  10. Reply
    mlbjock_58
    April 30, 2011 at 1:34 am

    there were no or are there any bush appointees in freddie mac or fannie may, the ceo’s were appointed by bill clinton, however it was law that the dumbing down of treasury accounts were to be carried out by succeeding administrations under the law enacted previous to the ronald reagan administration

  11. Reply
    A Republicrat
    April 30, 2011 at 1:59 am

    Because Bush was a liberal with an (R) instead of a (D)

    Bush loved the welfare state and illegal immigration, ha

  12. Reply
    whimsy
    April 30, 2011 at 1:59 am

    The folks of the GOP find it difficult to accept personal responsibility for their actions…

    They loved big business, too much, at the country’s expense.

  13. Reply
    zaza
    April 30, 2011 at 2:49 am

    You obviously did not read this entire article. lol

  14. Reply
    Drew Bloodsd
    April 30, 2011 at 3:15 am

    Some of the people on here wouldn’t know how to check facts, nor read them if it’s anything against their party. That’s why our country is in the mess it’s in. This is why, watch the thumbs down I get when I state this fact:

    In 1999, Fannie Mae came under pressure from the Clinton administration to expand mortgage loans to low and moderate income borrowers. At the same time, institutions in the primary mortgage market pressed Fannie Mae to ease credit requirements on the mortgages it was willing to purchase, enabling them to make loans to subprime borrowers at interest rates higher than conventional loans. Shareholders also pressured Fannie Mae to maintain its record profits.

    In 2003, the Bush administration recommended significant regulatory overhaul of Fannie Mae and Freddie Mac. However, the Democrats opposed that proposal, fearing that tighter regulation could sharply reduce financing for low-income housing, both low and high risk.
    http://en.wikipedia.org/wiki/Fannie_Mae

  15. Reply
    evlma
    April 30, 2011 at 3:40 am

    Chris Dodd obstructed Bush and McCain from applying regulation to Freddy Mac and Fannie Mae, calling them heartless because they wanted to regulate lending to high risk borrowers. Dodd has received a huge amount of money from Fannie and Freddy, more than any other in congress.

    Frank, Dodd, Waters, Reid and others resisted the curtailment of Fannie and Freddy’s fraudulent activity saying nothing was wrong, nothing could possibly happen with the housing industry or credit industry over that.

    LIFE IN JAIL IS TO GOOD FOR DODD, FRANK, REID, AND WATERS and more of the criminals who got us in this mess.

    Barry OBAMA is also in this fraud UP TO HIS NECK! He got more money than anyone from Freddy and Fannie during his time in the Senate. Now no one will prosecute those who have pulled the worst fraud in history on the US and put us in these hard economic times.

    The GOP stopped Dodd? WOW, that is just RICH!

  16. Reply
    William S
    April 30, 2011 at 4:25 am
  17. Reply
    Jonny B
    April 30, 2011 at 5:14 am

    Why should deadbeats get to have their rates adjusted when they signed a contract with their bank already? Thats not fair to people who pay on time. Barney Frank is to blame for this fiasco! Here is a link of a video with Barney Frank saying Freddie and fannie are just fine in the early 2000s.
    http://www.youtube.com/watch?v=cMnSp4qEXNM&NR=1

  18. Reply
    Iwould B. Leveleight
    April 30, 2011 at 5:51 am

    You’re funny!

  19. Reply
    thetunak
    April 30, 2011 at 6:17 am

    Maybe Chris Dodd shouldn’t be the authority on mortgages. He allegedly received a very favorable rate through the Countrywide VIP program, receiving a lower rate than market. When questioned and asked to show his HUD statement and mortgage papers, he couldn’t produce them for over 6 months.

  20. Reply
    cfb193
    April 30, 2011 at 6:41 am

    This is a joke right. Chris Dodd, was the problem along with Barney “suck it up” Franks. They should both be in prison.

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