John Preston

CRA and Fannie & Freddie: Betes Noires

First, F/F do not get a hall pass...the reckless growth of their underwriting model went beyond anything ever attempted by the "private lenders". 28/36 income debt ratios guidelines became 60/65 realities....at 100% LTV with 600 FICO scores....and no reserves....

Second, all of these "private lenders" fall under the umbrella of federally regulated loans/lenders....so there was the right and responsibility of regulatory agencies to watch what was going on...

Third...the leverage issue created on Wall Street and utilized by ALL lenders, public and private....played a big roll in the motivation to push the limits...

CRA, and other attempts to broaden the F/F footprint....all of this counts...and then there is the "F/F "I bought your vote with my money" list.....