As we all knew the liberal Democrats are responsible for the financial mess we are in now and that they want to make it worse with the "buyouts". That is, they want to control, dictate, all aspects of our lives from how and where we live to what we think and do. Bush has a hand in this financial mess as well by not stopping some of the Congressional spending that came across his desk for the last eight years.
But with the federal government taking over the banks and other financial institution now, along with the environmental departments, EPA and the DNR, it isn't lost on me that we are looking at a huge loss in personal freedoms.
But I have to come back to a point that I have pounded on from other posts, and that is, a majority of those that voted for the liberal, socialist agenda won't know when the are without personal freedom as they never knew they had in the first place. They were always looking for the easy way out of everything in life - it's the lotto mentality - the quick fix for every situation. "If only I could win the big one, I will be on easy street". Blind to reality and deaf to reason.
Many will point the accusing finger at Bush when the worst happens and it will if we stay on this path of "something for nothing" course, but the real culprits are the voters that put these socialists into office and are keeping them there. Will these people recognize their own personal failure? Fat chance!
Keep the faith, the battle goes on!
Fannie, Freddie And Now, Hannie
By INVESTOR'S BUSINESS DAILY
Posted Thursday, January 15, 2009
Subprime Crisis:* The media have pounded President Bush for a wave of Hispanic home foreclosures. But it was Democrats who launched a drive to loosen credit for Hispanics — many of them illegals.
Read More: *Economy http://www.ibdeditorials.com/FeaturedCategories.aspx?sid=1805
Democrats and their advocacy groups also prodded Fannie Mae and Freddie Mac to buy the high-risk NINJA (no income, no job, no assets) loans they'd pressured banks to make to Hispanic immigrants. Now immigrants are defaulting on subprime mortgages in droves, adding to the toxic debt that is poisoning the financial industry.
Yes, Bush was "eager," as the Washington Post described it, to put more Hispanic families into their own homes, even setting a goal of higher minority homeownership soon after taking office. But Bush didn't pressure lenders to adopt sloppy underwriting standards. Nor did he encourage Fannie and Freddie to underwrite subprime loans to meet quotas for minority lending.That was done under the previous administration.
The groundwork for disaster was laid by Clinton and his social engineers — in this case, former HUD chief Henry Cisneros, now a major lobbyist for Latino homeownership. During the Bush years, the Congressional Hispanic Caucus fanned the flames of the crisis. Led by Democratic Rep. Joe Baca, whose California district is 60% Hispanic, the caucus teamed up with a lobbyist group that Cisneros advises — as well as La Raza and other inner-city agitators — to pressure Fannie and Freddie into making risky subprime loans to Hispanic immigrants that required neither income nor asset documentation.
By 2006, before the bubble burst, Hispanics had taken out 40% of all subprime loans. Now these chickens are coming home to roost. The mortgage giants, internal memos show, warned that although the loans were popular with Hispanic borrowers, they had much higher delinquency rates of 8% to 13%.The loans were aggressively pushed by a Hispanic lobbying group advised by Cisneros, who originally set the minority lending quotas at Fannie and Freddie.
Even as foreclosures mounted, the Washington-based National Association of Hispanic Real Estate Professionals, known as NAHREP, lobbied lenders, as well as Freddie and Fannie, to ease down-payment and credit standards for immigrants."NAHREP maintains that California, Texas and other states with large numbers of immigrants could see a dramatic jump in homeownership if a greater number of major lenders adopted alternative credit-scoring systems," the group said in a 2007 report that included a foreword written by Cisneros, urging the closing of the homeownership gap between Latinos and whites.
Giving new meaning to chutzpah, NAHREP and the caucus now blame subprime lenders for the flood of Hispanic foreclosures, claiming Hispanics fell prey to their "predatory lending practices.
"Not so fast. According to a recent Federal Reserve report, the problem centers on bad credit. Hispanics and African-Americans, on average, "have lower credit scores than non-Hispanic whites and Asians," it found. They also have higher default rates on mortgages — and not just higher-cost subprime mortgages, but all types of loans, the Fed noted.
Hispanics defaulted for the simple reason that they were less likely to qualify to own a home in the first place. Least-qualified were illegal immigrants, but that didn't faze NAHREP and the Hispanic caucus on Capitol Hill. They actually encouraged lending to aliens.
No Social Security? No problem. NAHREP pushed the use of ITINs — individual tax information numbers — along with the Mexican-issued Matricula Consular cards in lieu of Social Security numbers.By law, banks don't have to check immigration status, and after heavy lobbying by Hispanic housing advocates, they made loans to illegals — lots of them. By some estimates, millions of undocumented workers became undocumented borrowers almost overnight.
Until recently, ITIN mortgages couldn't be sold on the secondary market, as Fannie and Freddie wouldn't touch them as a matter of policy. So with the support of NAHREP and the Hispanic caucus, "Hannie Mae" was created — the Hispanic National Mortgage Association, based in San Diego. And it began buying ITIN mortgages from lenders, helping them spread the risk.
Now Hannie Mae itself risks defaulting on more than $200 million in loans it has acquired. These politically correct casas were built on sinking sand, and now we're all having to foot the bill.
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