Replies to post #400483 on Fannie Mae-No Politics (FNMA)

[Donotunderstand]

rgd

Were no income no asset loans a PROGRAM OF F and F

[Potty]

rgd, you are questioning the credibility of the wrong person here lol

Ober is pretty scrupulous

I also saw some of your earlier claims about the roles of the TBTF banks and FnF, so I also think you are way off base.

[obiterdictum]

Obiterdictum, if you wish to know the GSE's involvement with loans and Policies, please cut and paste this site:

https://tjhancock.wordpress.com/housing-bubble-financial-crisis-detailed-comprehensive-assessment/

Opinions are not of interest. The questions asked concern matters of fact.

My questions about your age and country were relevant. Do you know who, "Felix the Cat is" Who is Deputy Dawg" Do you know who "Darla" is? Age is important, because maybe you were too young to be involved in the housing crisis or know about it when it was actually taking place. When my son was 13,and learning the guitar, I asked him if he could name all of the Beatles...his response...Who are the Beatles? Age in the Mortgage Business is relevant. You don't seem to believe that F&F created the Guidelines that toppled the Mortgage Industry. They made the rules, Bankers and Lenders took advantage. I will try and find a rate sheet from the Mid 90's, not sure what I have in storage, but I will look this weekend. GLTY

Yes. Yes. Yes (Little Rascals). I was well invested in real estate stocks. Sold all stocks in June 2007 after two poor quarters.

It is not a questions of belief. It is a question of fact. Demonstrate the position by showing documentary evidence of Fannie and Freddie creating and promoting NINA loans.

[Remul]

It would seem based on the article you linked it started with Clinton (which is what I tell most folks going back to this era).

In 1995, the Clinton Administration changed the law governing GSEs’ mission — the Community Reinvestment Act (CRA) — to encourage more lending in poor neighborhoods.....

Over the next decade a number of efforts to continue to put pressure on lenders to lend more focused specifically on this area of high risk......

FnF were just part of their manipulation. However, they were the only institution that didn't need a bail out that were forced to take the money.

Its all a mess and we'll just have to wait to see at this point...

[2cuall]

I don't know Obit personally, but I find this person to be factual.i was alive then, I myself took out 4 no doc loans. None from F&F.2 from suntrust, 2 from Washington mutual.u would do yourself a great service by paying attention to what Obit writes. Govt made the rules, we just played by them.f&f where forced to take the bad paper that didn't meet their requirements.have a bigly day

[955]

You don't seem to believe that F&F created the Guidelines that toppled the Mortgage Industry. They made the rules, Bankers and Lenders took advantage.

HUD was the problem, not Fannie & Freddie. HUD FORCED it's corrupt policies on F&F.

https://www.gpo.gov/fdsys/pkg/GPO-FCIC/pdf/GPO-FCIC.pdf

[Lionscantwinagame]

In 2005 and 2006, being the peak years of subprime origination and subprime MBS issuance, the following were the largest producers.

Top Subprime Mortgage Originators:
1. HSBC
2. New Century Financial
3. Countrywide
4. Citigroup
5. WMC Mortgage
6. Fremont
7. Ameriquest Mortgage
8. Option One
9. Wells Fargo
10. First Franklin

These 10 subprime originators generated $456.1 billion in 2005 and $362.4 billion in 2006 worth of subprime loans. The total dollar value for subprime origination in 2005 and 2006 was $664.0 billion and $600.0 billion respectively. There are 15 other originators on the list not shown, and when added in with the 10 shown above, the sum total for all 25 is $604.9 billion in 2005 and $543.2 billion in 2006.

Top Subprime MBS Issuers:
1. Countrywide
2. New Century
3. Option One
4. Fremont
5. Washington Mutual
6. First Franklin
7. Residential Funding Corp
8. Lehman Brothers
9. WMC Mortgage
10. Ameriquest

These 10 subprime MBS issuers generated $292.8 billion in 2005 and $283.9 billion in 2006 worth of subprime MBS. The total dollar value for subprime MBS issuance in 2005 and 2006 was $508.0 billion and $448.6 billion respectively. There are 15 other issuers on the list not shown, and when added in with the 10 shown above, the sum total for all 25 is $417.6 billion in 2005 and $427.6 billion in 2006. So 25 subprime MBS issuers constituted 82% of the market in 2005 and 95% in 2006.

I believe Alan Greenspan hailed these securities as innovation of the private market.

Sources:
https://www.newyorkfed.org/medialibrary/media/research/staff_reports/sr318.pdf

http://www.insidemortgagefinance.com/data/origination.html