1) Bush homeownership plan aims at 5.5 million lift for minorities (2003)
President Bush announced an Administration effort to increase home ownership rates among African Americans and Hispanics by 5.5 million by 2010.
The plan would provide down payment assistance to 40,000 minority homebuyers each year . . .
Bush’s plan would be closely tied to minority loan programs offered by Fannie Mae and Freddie Mac. President Bush commended Fannie Mae and Freddie Mac’s efforts . . .
Bush was using tax payers’ money to make down payments for people who weren’t even financially capable enough to afford a down payment.
2) 2004: Under President Bush, the U.S. Department of Housing and Urban Development announces that it will require Fannie Mae and Freddie Mac, also known as the Government-Sponsored Enterprises (GSEs) “to increase their purchase of mortgages for low- and moderate-income families and underserved communities.” In order to meet these new requirements, the GSEs begin purchasing mortgage-backed securities made up of subprime loans.
All the Democrats fault apparently – majority Republican congress and Republican presidency.
During that time you also had the subprime mortgage heyday. When conventional mortgages were low, these bloodbanks were handing out adjustable rate mortgages that started at 8 to 14%, had huge upfront fees and after only two to three years the interest rate jumped considerably. Homeowners were you know what unless they could get out of these adjustable time bombs. The bloodbanks made a fortune on the loans and then sold the paper to other financials that also made nice gains. No one cared if the house foreclosed because houses were going up so quickly, a fast foreclosure still gave an additional profit. This was as good as a 29% credit card with additional fees to the financials. So don't just blame this mess on the homebuyer or even the government. There was alot of money to be made with those subprimes. And alot of money was made, until people could no longer get out of these mortgages because of job losses and housing started to fall. Then the bubble burst.