sether

The Escalator of Life Is Going Down (Part 2)

I take issue with the claim that Fannie+Freddie helped cause this global crisis through democratic mandated lending to unqualified borrowers. That is not what happened. The Bush admin wanted to increase Fannie/Freddie exposure to "low income" loans. Management at these companies and congressional oversight / regulation related to that may have been horrible to criminal, but that's a different issue, and a bipartisan one. Who was controlling these committees, congress, and white house at the time? Anyway, here's some other out of context quotes:
In 2004, this is what Frank said regarding the BUSH administration's attempts to reform Fannie/Freddy:
“Fannie Mae and Freddie Mac would suffer financially under a Bush administration requirement that they channel more mortgage financing to people with low incomes, said the senior Democrat on a congressional panel that sets regulations for the companies.

“The new rule compels the companies to put 57 percent of their mortgage financing by 2008 toward homes for people with incomes no greater than area median income. Fannie Mae and Freddie, the two largest U.S. mortgage finance companies, must currently meet a 50 percent threshold.

this from a Bloomberg article, June 17, 2004: "Fannie, Freddie to Suffer Under New Rules, Frank Says” by Jim Tyson.