madasiwannabe

How Much Are Fannie and Freddie to Blame?

Your forgetting your history. In 2003/2004, the GSE's were flooded with lawsuits for racism. People were complaining that they were denied loans for no reason so it must be ratial profiling. Their disadvantaged numbers were not consistant with their competitors so it looked bad on paper for Fannie and Freddie. When you look at the first case, a single black female, her FICO was 560.

To get the dogs off, Congress had OFEHO mandated that both Fannie and Freddie lower the bar. They did and now look where they are at.

In 2004 the CEO of Freddie ignored the Chief Risk Officer when he came forward with concerns. On an interview his explination was "I understood the risk, but I work for many masters". Yes the GSE's took on too much risk, but not for greed or to keep up with the Jones's.

Look up speeches by Bush and Greenspan in 2004. They were preaching owning a piece of the American dream was as a right and urged banks to come up with ways to make loans available to all Americans. They did.

Time for the media to talk with OFEHO and Congress to get the real story.