I realize the following doesn't fit with the propaganda you have been fed but you might want to read it over.
"This Administration will constantly strive to promote an ownership society in America. We want more people owning their own home. It is in our national interest that more people own their own home. After all, if you own your own home, you have a vital stake in the future of our country."
- President George W. Bush, December 16, 2003
•The US homeownership rate reached a record 69.2 percent in the second quarter of 2004. The number of homeowners in the United States reached 73.4 million, the most ever. And for the first time, the majority of minority Americans own their own homes.
•The President set a goal to increase the number of minority homeowners by 5.5 million families by the end of the decade. Through his homeownership challenge, the President called on the private sector to help in this effort. More than two dozen companies and organizations have made commitments to increase minority homeownership - including pledges to provide more than $1.1 trillion in mortgage purchases for minority homebuyers this decade.
•President Bush signed the $200 million-per-year American Dream Downpayment Act which will help approximately 40,000 families each year with their downpayment and closing costs.
•The Administration proposed the Zero-Downpayment Initiative to allow the Federal Housing Administration to insure mortgages for first-time homebuyers without a downpayment. Projections indicate this could generate over 150,000 new homeowners in the first year alone.
•President Bush proposed a new Single Family Affordable Housing Tax Credit to increase the supply of affordable homes.
•The President has proposed to more than double funding for the Self-Help Homeownership Opportunity Program (SHOP), where government and non-profit organizations work closely together to increase homeownership opportunities.
•The President proposed $2.7 billion in USDA home loan guarantees to support rural homeownership and $1.1 billion in direct loans for low-income borrowers unable to secure a mortgage through a conventional lender. These loans are expected to provide 42,800 homeownership opportunities to rural families across America.
Zero Down Payment program?
Only a Rethug would believe in a government program propping up home prices and making the Bush administration's numbers look less miserable, via writing mortgages having increased likelihood of failure.
G W Bush - worst President ever!
You do realize don't you that Obama has initiated a help with down payment program for those with no money (mostly blacks & other minorities) to be paid for by banks as part of their penalty for being guilty of robo signings and the mortgage collapse in general?? Obama has also pumped in billions into FHA encouraging lending to these poor credit borrowers since FHA only has a 3 1/2% down payment requirement.
We never learn. This too will end badly as FHA is about to go belly up. House prices are too high and no matter how hard government tries to prop them up and continue to lower lending standards they eventually fall to where the free market will clear them. Just wait until all these trillions in bonds Bernanke bought get thrown into the market. Rates will soar. Either that or we go into default. Oh Treasury can raise taxes by all these trillions to pay for them but the people are tapped out. Stay tuned...
Like I said it started under Clinton. There is no argument here. What masked future problems was housing did have a fair price in the beginning when rates were 8%. Then Housing became a proxy for the bond market. As rates declined prices went up. When they couldn't go any lower "creative financing" took over. Once the horses left the barn the blame is far and wide including people lying on their applications. Again without the FED and government none of this happens.
Actually Bush tried to stop some of the crazy lending going on but was shot down. It's Congress not the POTUS that controls banking rules etc. That's where Barney Frank & Chris Dodd come in. Bush was left with a collapsed stock market and a big recession then 9/11. Greenspan kept rates at 1% and encouraged ARM's. The idea was to get housing to lift us out of recession. Does this sound familiar?? We are doing this yet again. Bernanke is keeping rates at 0%. Obama has pumped cash into FHA witht heir 3 1/2% down. Government is trying to get the housing bubble going again. Sure any POTUS eventually takes credit for what works. Nothing new there. However let's look back??
"The National Homeownership Strategy began in 1994 when Clinton directed HUD Secretary Henry Cisneros to come up with a plan, and Cisneros convened what HUD called a "historic meeting" of private and public housing-industry organizations in August 1994. The group eventually produced a plan, of which Mason sent me a PDF of Chapter 4, the one that argues for creative measures to promote homeownership.
The very worst idea in the plan, which fortunately never gained approval, was to let first-time homebuyers freely tap their IRA and 401(k) retirement-savings plans with no penalty to scrounge up a downpayment. That, HUD estimated, would have "benefited" 600,000 families in the first five years."
Here is an excrep from that doc
"For many potential homebuyers, the lack of cash available to accumulate the required downpayment and closing costs is the major impediment to purchasing a home. Other households do not have sufficient available income to to make the monthly payments on mortgages financed at market interest rates for standard loan terms. Financing strategies, fueled by the creativity and resources of the private and public sectors, should address both of these financial barriers to homeownership."
Cuomo followed with equal fervor after Cisneros left. Once this picked up stream there was no stopping it. Nobody saw a future financial collapse because of over valued Real Estate. Everybody was making too much money especially the government. Any attempt to stop it fell on deaf ears. Snow on that subject??
"Housing finance,” ex-Treasury Secretary John Snow commented in 2003, “is so important to our national economy that we need a strong, world-class regulatory agency to oversee the prudential operations.”2 This call for stronger regulation went relatively unheard, however. As political infighting dogged priceless Congressional session time, regulatory matters were simply further delayed" To simply blame Bush is ridiculous The whole country was at fault. However without government none of it happens & it stated with Clinton which was my point.
"Factually based arguments are lost on these fools."
Probably why you Libocrits spend so much "Time" cutting and running from them...
By STEVEN A. HOLMES
Published: September 30, 1999
In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.
The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.
Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.
In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates -- anywhere from three to four percentage points higher than conventional loans.
Now you also might want to consider B. Frank had no authority to set policy while the bubble was inflating as Dems were in the minority and he held no committee chairmanship. The bubble was about the raising of capital reserve ratios by investment banks, the rating of securitized mortgages as AAA by corrupt rating agencies allowing underwriters to sell off the debt exposure and re-fund themselves, and the lowering of lending standards because lenders did not have any risk to default once the loans were bundled and sold.
All those things happened as a result of a lack of oversight by regulatory authorities under the control of the Bush admin or agencies run by its appointees.
LOL, you only look at the culprits after the horse left the barn! We all know there was a lot of blame to go around after the fact. However it was government that got the ball rolling. However if people made the payments there would have been no crisis! Of course if you give an alcoholic free double shots he will drink them. So don't be surprised when he ends up drunk. Frank had a lot of influence in Congress which operates on seniority. On Frank from inquiry into collapse:
"His most successful effort was to impose what were called "affordable housing" requirements on Fannie Mae and Freddie Mac in 1992. Before that time, these two government sponsored enterprises (GSEs) had been required to buy only mortgages that institutional investors would buy--in other words, prime mortgages--but Frank and others thought these standards made it too difficult for low income borrowers to buy homes. The affordable housing law required Fannie and Freddie to meet government quotas when they bought loans from banks and other mortgage originators. " More: "At first, this quota was 30%; that is, of all the loans they bought, 30% had to be made to people at or below the median income in their communities. HUD, however, was given authority to administer these quotas, and between 1992 and 2007, the quotas were raised from 30% to 50% under Clinton in 2000 and to 55% under Bush in 2007. The FED supplied the cash. Then everybody wanted the same deal.
Sure with a wink and a nod from Government Wall Street bundled the #$%$ and sold it to put the cash back into the system to be lent out again and rating agencies went along for the ride. But leverage created the crisis not reserve requirements and that was directly a result from FED too low rates policy and I would add a big dose of laziness by all. Oh, the underwriters didn't need the rating agencies?? They never held the paper which was sent off to Fannie & Freddie nightly. It was required for the institutional buyers of the junk.