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Fannie and Freddie

Ok, so when are we going to talk about the core of this mortgage melt down??
I watched a special on Fox News (I know, anyone voting Obama is thinking, their biased, so they don't count. Well, CNN was doing a special about young kids voting. Leave it to MTV!! I want to know why I am paying so much for everything, not how the kid down the street is voting) anyway, it was called Saving our Economy. Very interesting. I think we all agree that Fannie and Freddie are at the core of this. Before this whole financial crisis I was teetering on the fence, now I am so McCain it's driving my DH crazy! The Dems, especially Obama, really dropped the ball on this one. Obama has helped or been helped by Fannie and Freddie, ACORN, Ayers, and Raines. He is the essence of corrupt politicians. If you differ with me I would love to enlighten you a little.

Answer Question
 
lilac84

Asked by lilac84 at 9:43 AM on Oct. 5, 2008 in Politics & Current Events

Level 1 (0 Credits)
Answers (12)
  • The core of this problem are the people that took out the mortgages they knew they had no business signing on. None of these mortgages companies held guns to peoples head and told them to make a bad decision. It's the americans that signed on the dotted line for credit they couldn't pay for that is the problem. PERSONAL RESPONSIBILITY. It seems that is a bad word these days. Especially for the Obama people. Palin is the only one I have seen so far come close to putting some of the responsibility on the american people, even though she tiptoed around her wording very carefully on that. IT IS THE AMERICANS FAULT FOR TAKING ON MORTGAGES AND CREDIT UP TO THEIR EYEBALLS. Lets talk about that.
    Anonymous

    Answer by Anonymous at 9:48 AM on Oct. 5, 2008

  • These mortgage companies were increasingly predatory as time went on, and fannie and freddie paid more and more politicians to jump into their pockets. The preyed on low-income families that never before would have been able to get a home loan. It happened to my husband and I when we were first looking for a home loan. We where smart enough to say no and go to someone else but there were a lot of people that believed these cockroaches when they told them they could afford this home, they thought that they were getting the deal of a lifetime.
    lilac84

    Answer by lilac84 at 10:17 AM on Oct. 5, 2008

  • I read this article the other day that was dated September 30, 1999 from the New York Times. Reading it has shed some light on the matter. Here's a quote from the article: 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. Go to www.nytimes.com and in the search bar type in: Fannie Mae Eases Credit To Aid Mortgage Lending. Seems to me that we need to quit blaming the Bush Administration and dig deeper into the Clinton Adminstration.

    OldrWizrMom

    Answer by OldrWizrMom at 10:21 AM on Oct. 5, 2008

  • If we want to go that route about Fannie and Freddie, lest we not forget that Rick Davis was receiving $20,000 a month from Fannie and Freddie as late as last month. There is plenty of blame to go around.
    Anonymous

    Answer by Anonymous at 11:20 AM on Oct. 5, 2008

  • His firm was getting paid not him personally, he has not been a contributing member of his firm since undertaking the job from McCain, so lets not bend the truth like that. Chris Dodd, Chuck Schumer, Barack Obama (who is third on the list of Senators receiving contributions from fannie and freddie that goes back 20 years and he has only been in the senate 3 years!!!) Nancy Pelosi, Baney Frank and the list goes on. Yes, there are republicans on the list, but the different is that almost all the leaders of the dem party are on this list, Frank is the chairman of The House Financial Commitee. He was in charge of things like this and always said "There was no crisis with Fannie and Freddie" and thats almost a direct quote!!
    lilac84

    Answer by lilac84 at 11:38 AM on Oct. 5, 2008

  • This all started with the Clinton Administration. His administration asked Freddie Mac and Fannie Mae to give mortgages to lower income families so that they could live in houses. Then the corrupt mortgage brokers willing gave them loans they KNEW they would not be able to afford. These individuals who accepted these loans should have known what they were getting themselves into. So we are all to blame for this melt down, in my opinion.

    Also Obama should give back this money he accepted from them, to help out the rescue plan...but of course he WON"T
    Anonymous

    Answer by Anonymous at 12:32 PM on Oct. 5, 2008

  • ACORN was also behind the push to pressure Mortgage companies to over lend. As a financial councelor I have taught for years that families should never purchase a home based on what the mortgage lender approves them for. Even in my case the bank approved us for $210K!!! OMG!!! I have enough brains to realize that more than HALF our income would have been put towards the mortgage!! Now how stupid is that? Well, let me tell you...I know that the majority of Americans, in deed have more mortgage than they can EVER afford. Its a stupid way to live and a mighty stressful one too. So while I'm for the lenders having their hands and butts spanked, I'm also for Americans having to eat their own lunch for being cosumer foolish.
    lifeasinoit

    Answer by lifeasinoit at 1:08 PM on Oct. 5, 2008

  • No, actually, this goes back to CRA and Carter and then Clinton loosened it even more.

    But we all have personal responsiblity, don't we? I exercised it and I resent the help that everybody is getting who didn't exercise it!
    Anonymous

    Answer by Anonymous at 1:44 PM on Oct. 5, 2008

  • the problem is not loaning money to low income families, but the stated income programs that came out for W2 employees. if you are not self employed then you are not stated! americans were not happy with how much house they could qualify for based on INCOME, so they lied about their income to afford a bigger or better home than their budget allowed. if you make 3000 a month, how do you expect to afford a mortgage for 2000 a month? it all comes down to greed. of course there are exceptions, but this is where the majority for the foreclosures are coming from.
    simone_ck

    Answer by simone_ck at 5:12 PM on Oct. 5, 2008

  • Fox had an interesting article on their website the other day regarding Barney Frank's involvement with a higher up at Fannie and how the timing coordinated with when they were supposed to be passing laws regulating Fannie. Sounds a little suspicious to me. Seems like Mr. Frank may have been allowing personal matters to interfere with his work. I would be curious to learn more about this from more sources if anybody has any info about it.
    cait030507

    Answer by cait030507 at 10:25 PM on Oct. 5, 2008

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