Zeev's Turnips Talk Politics (ZTTP)

[RDG013]

Indeed, According to housing expert Edward Pinto, Fannie’s former chief credit officer who has presented his findings before Congress and should himself be asked to testify before the commission, millions of mortgages to borrowers with credit scores of less than 660 – considered by prominent researchers to be the dividing line for subprime loans — had been labeled by Fannie and Freddie as prime going back as early as 1993. In his writings for the American Enterprise Institute, Commissioner Wallison noted that this misrepresentation by the government-backed mortgage giants could have itself been a major factor in inflating the housing bubble. “Market observers, rating agencies and investors were unaware of the number of subprime and Alt-A mortgages infecting the financial system in late 2006 and early 2007,” he wrote.

http://www.openmarket.org/2010/04/09/fannie-and-freddie-finally-called-to-crisis-commission/