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