fannie freddie are not to completely to blame. If you want to place blame on the current economy blame not just fannie and freddie, blame all wall street banks, insurers, ratings agencies, and hedge funds.
FRED: What % of all mortgages have some connection to Fannie/Freddie or the FHA? Why did Countrywide get into trouble? Were the lending standards adjusted up or down in the last several years? What about the prevalence of no-money-down loans? Lastly, do you agree or disagree with "redlining"?
@UTubekookdetector what makes you think banks, who lobbied for this deregulation in the form of selling mortgages as securities didn't keep subprime loans instead of selling them in the form of securities to investors? No money down on an adjustable interest rate is predatory lending. Banks would not be allowed to do that loan people money they could not pay then sell the risk away. If the banks couldn't sell away their risk, with high credit ratings (thanks to agencies), why would they lend?
FRED: The answers are: Fannie/Freddie/FHA are tied in some fashion to about 75% of all mortgages. They're artificially inflating the housing sector (as they did until 2008) and in the event of another bubble, taxpayers will foot the bill. Hoover also had his own housing bubble (see the link under the vid). Countrywide got into trouble with subprime loans that were then bundled as MBS'. In your rebuttal, you also failed to mention that nobody is ever forced to enter a mortgage contract.
FRED: Where's presonal responsibility for the buyer? If one doesn't like an ARM, they can go elsewhere. If there's enough competition and a few banks go down because of bad loans, there will certainly be banks that don't do that and they'll remain solvent. You never gave me your opinion on "redlining." Fannie/Freddie's credit score bar for conventional and subprime mortgages fell to 630 and 590, respectively. Those are not strong credit scores.
fannie freddie are not to completely to blame. If you want to place blame on the current economy blame not just fannie and freddie, blame all wall street banks, insurers, ratings agencies, and hedge funds.
thefredsays 1 year ago
FRED: What % of all mortgages have some connection to Fannie/Freddie or the FHA? Why did Countrywide get into trouble? Were the lending standards adjusted up or down in the last several years? What about the prevalence of no-money-down loans? Lastly, do you agree or disagree with "redlining"?
UTubekookdetector 1 year ago
@UTubekookdetector what makes you think banks, who lobbied for this deregulation in the form of selling mortgages as securities didn't keep subprime loans instead of selling them in the form of securities to investors? No money down on an adjustable interest rate is predatory lending. Banks would not be allowed to do that loan people money they could not pay then sell the risk away. If the banks couldn't sell away their risk, with high credit ratings (thanks to agencies), why would they lend?
thefredsays 1 year ago
FRED: The answers are: Fannie/Freddie/FHA are tied in some fashion to about 75% of all mortgages. They're artificially inflating the housing sector (as they did until 2008) and in the event of another bubble, taxpayers will foot the bill. Hoover also had his own housing bubble (see the link under the vid). Countrywide got into trouble with subprime loans that were then bundled as MBS'. In your rebuttal, you also failed to mention that nobody is ever forced to enter a mortgage contract.
UTubekookdetector 1 year ago
FRED: Where's presonal responsibility for the buyer? If one doesn't like an ARM, they can go elsewhere. If there's enough competition and a few banks go down because of bad loans, there will certainly be banks that don't do that and they'll remain solvent. You never gave me your opinion on "redlining." Fannie/Freddie's credit score bar for conventional and subprime mortgages fell to 630 and 590, respectively. Those are not strong credit scores.
UTubekookdetector 1 year ago
"Don't thank me now". Almost fell out of chair when you said that at the end. ;-)
3slimdog 2 years ago