President Obama and his party say they're committed to bailing out homebuyers "tricked" into taking out subprime mortgages. But the story of subprime victimization is as fictional as it is prevalent. And no one has exploited it more than the Obama administration. When the vice president recently warned a gathering of black voters in Virginia that a Romney presidency would let Wall Street "chain" them again to "abusive" subprime loans, he racially amped up the false narrative. "They're gonna put y'all back in chains," Joe Biden said with trademark hyperbole.
Why, here in MA, where that insane study was done that based the "give a mortgage to anyone, and I mean anyone" upon, we had an "undocumented worker" who was a part-time house cleaner, swear that the bank promised her a $400,000 mortgage was affordable for her. Needless to say, her future was ruined. Oops, I forgot, I'm talking about MA...she probably turned out just fine.
CRA comes from the Carter Administration. Punishment for failure to comply is the prohibition of banks to do abnking functions, such as mergers/aquisitions and expansion. The act was relatively ignored until Bill Clinton became President. In an effort to foster more votes from those in the "underclass", those who are not traditionally able to buy homes due to credit/income, Clinton begins enforcement. At the same time, remember ads on TV that "everyone deserves a home" type messages. Banks are threatened with punishment if they do not make loan programs for people with no business getting loans. Those mortgages are, at the swame time, seen as just as good as any other loan and guaranteed by FannieMae/FreddieMac. Like many other loan packages, they are then traded on Wall Street as derivatives. Most who had no financial discipline to begin with started leveraging their home's increased value to purchase large ticket items and lifestyle purchases. In essence, the low interest rates and housing bubble caused by readily available, almost free money had driven supply and demand sky high. Most people who never had a dime used their homes as enormous credit cards. Original loan values, barely affordable, were now triple the amount and then the recession hit. Now the loan was due. No more re-mortgage with a cash out. The foreclosures came and the loans became worthless. Sarbanes Oxley and other post-Enron rules came into play. Foreclosed properties were now valued at zero on a banks ledger, (rather than some pct of value). banks holding large amounts of these "assets" found that their banks were no longer solvent as their asset base evaporated. Wall Street collapsed. Does this sum it up sort of correctly?
I am no fan of the banking industry which played evil games with credit cards, but on this 'tricked' homebuyers thing .... I recall a different kind of story. .... Weren't banks forced to give these loans, after being threatened by a Democrat Congress and 2 electeds names Dodd and Frank?
I will gladly stand corrected if my memory fails me.
#8 Your memory is just fine. The banks were forced to relax their lending standards so people with low income or a poor credit history could obtain mortgages, and in return for them not making too big a fuss about it were given assurances that these loans would be underwritten by the federal government.
if I am not mistaken, a young lawyer in Chicago, Barack Obama went after the banks in order to force them into giving subprime mortgages to the poor black people in Chicago. He and Jessie Jackson threatened them with suits and boycotts if they refused. We can trace this mess back to Obama.
Who were the prime enablers of the fiasco known as the housing bust? Fannie and Freddie. Who just happened to receive the 2nd highest amount of contributions from fannie and freddie - you guessed it! b. hussien obama! Create a problem. Blame others. Offer a solution. Repeat to infinity and beyond.
No one had to trick these losers into buying homes they could not afford. I personally know people who bought $900,000 homes with nothing down, interest only, and they got $50,000 up front to pay for closing. This couple then went out and put down payments on a Mercedes, a Porsche, and a brand new Harley Davidson. They believed they were rich. They could not make payments on the cars, so they lost them. Then after five years they could not make the payment on the mortgage once it was more than just the interest, so they quit paying, and have been living in the home for four years now, with NO payments; like it is free. They were just whining recently to me about not knowing what they are going to do, as the bank is throwing them out very soon. No these people were more than willing to live in these elegant homes that they knew they would never be able to pay for. 0bama and the democrats allowed all them to do this. And in the four years of living for free, they did not save a dime.
Can anyone recall a single person convicted of what obama is saying? None. They have all made millions with a slice going to the DNC.
I am looking to buy a house. I have very good credit and would qualify for the under 4% loan. I figure I might be able to get a 300k loan. Probably qualify for a higher one but I know I would be stretching it as the loan amount is one thing but there are taxes and utilities and many misc cost to owning a home. I think that is what sinks many people.
I think the home prices are dropping further. Once the republicans actually put forth a plan and hopefully punish those responsible for the mess the democrats made - when has anyone been found guilty!! then home prices will start to rise again.
Smaller banks were 'encouraged' to make loans to people with less than stellar credit records. Fanny and Freddy even told these banks that they would knowingly buy these loans. This was a government 'encouraged' and sponsored time bomb.
Hope on hooves is arriving in South Dakota, one heifer at a time. A month after a freak blizzard dumped up to 4 feet of snow in western South Dakota, killing about 14,000 cattle, 45 donated cattle from Montana designed to serve as breeding stock were sent on Friday to ranchers in The Mount Rushmore State. Another 400 cattle, including yearling and bred heifers worth as much as $75,000, have also been sent to South Dakota from neighboring Montana, Wyoming and North Dakota to help the afflicted ranchers get back on their feet ahead of the looming harsh winter. “The
It is time to check in on Matt Bevin. Remember him? He is the multi-millionaire tea party-type Connecticut transplant who, instead of taking on liberal Louisville Democrat John Yarmuth for the House of Representatives, wants to oust Republican leader Mitch McConnell and his 90% lifetime American Conservative Union rating from the Senate. Bevin has not raised much money, but his personal wealth will pay for a good campaign if he parts with it. Roll Call recently reported that Bevin has between $1 and $5 million in a checking account, $500,000 to $1 million in a money market account, between $4.5
On Saturday, the White House reached the self-imposed deadline it set to ensure that HealthCare.Gov functions for at least 80 percent of visitors. While the White House is indicating that a number of goals it set for itself have been met, National Public Radio’s health policy correspondent Julie Rovner said she found verifying the Obama administration’s claims “frustrating.” She added that the administration has not provided reporters with “independent access” to the data they claim shows that they have largely repaired the federal insurance exchange portal. NPR anchor Scott Simon opened the report by noting that the date at which point
I saw my first AIDS case in 1981, the year the disease was identified. And for most of the time since then, I´ve conducted laboratory research to better understand the precise mechanisms by which the virus HIV causes AIDS. Lately, however, I´ve been equally worried about a related condition that is prevalent, persistent and threatens to bankrupt us. People in my world call it AIDS fatigue. AIDS fatigue has several telltale symptoms. One is thinking that the AIDS crisis is under control. Another is believing that AIDS is someone else´s problem, while still another is assuming that antiretroviral medications cure HIV/AIDS. All
On Black Friday, leftists organized a nationwide protests at several Walmart locations in order to try to extort union dues from the supermarket chain’s vast employee pool. Ostensibly, they were advocating for higher wages, but among the long list of the demands was their true intent – to unionize the nation’s largest employe, second only to the federal government. Wal-mart haters have a long history of pushing lengthy demands onto the retail chain. Some big groups are indeed backing the latest spate of protests, which has hit at least 15 cities. As al Jazeera (you take the truth where you can get
When legendary University of Michigan football coach, Bo Schembechler, retired in 1990, many people saw the end of a golden age; that Michigan, the most winning program in the history of Division I college football, would never achieve that same glory. But Bo was replaced. The football team claimed more victories and more championships. Football, like life, went on. Bo never would have wanted Michigan to live in the past. The Republican Party has not learned this lesson about its own team. We are still waiting for our beloved head coach, Ronald Reagan, to come out of the locker room and
The biggest test for Sunday´s HealthCare.gov deadline isn´t the number of people who can use the site or how quickly the pages load for them. It´s whether Democrats start to calm down. The White House says the site will be much better but not "perfect." But it´s got to be better enough to fundamentally change the political narrative that it´s broken. If it isn´t, nervous Democrats will get more nervous, and they´ll start searching for more serious ways to distance themselves from the law they passed. Vulnerable Senate Democrats have already flocked toward bills allowing people to stay on their existing health
New details are still leaking out about the diplomatic hoops diplomats were required to jump through in order to make the historic nuclear deal between the U.S. and Iran happen. In this chapter, all they had to do was return a stolen chalice. According to this insane L.A. Times story, the U.S. was debating how best to acknowledge Hassan Rouhani´s election as Iran´s new president. The two countries were already knee-deep in secret, back-channel negotiations, but, on the surface, the relationship was cold as ever. One diplomat convinced the President´s foreign policy team the best way to get in the
I am not one of those who want the president and other major politicians to comment on everything that takes place in America. On the whole, I think that there could be more reticence from the highest offices. But how long has this “knockout” thing been going on? I’m talking about these racial attacks across the country, wherein thugs pick little old ladies to bludgeon. These are mainly “black on white” attacks, as I understand it. If they were “white on black,” wouldn’t we be having a national emergency? Wouldn’t politicians, journalists, and others be talking about it to the exclusion
It’s difficult to think of a company doing anything as gee-whiz neat as 23andMe. The Mountain View, Calif., firm, which opened its doors to the public in 2007, provides comprehensive genetic tests to anybody with $99 to spend. Customers send in a saliva sample and about six weeks later get access to a detailed website explaining their unique genetic code along with an opportunity to connect with (usually distant) relatives who have also done business with 23andMe. For those who use it, the results are endlessly fascinating; for scientists, the company’s trove of genetic data is hugely valuable. And that’s
It is difficult for an old liberal Democrat to utter such words as those. Vote Republican and save the country, indeed. Yet that is what I am now saying, and to make it even more emphatic, I am also suggesting that for the next two elections, all good people should consider voting a straight Republican ticket as a protest against the massive political sins of the Democrats. If enough voters did that, in addition to saving the country it might also save the Democratic Party from itself. My old party has lost its soul and integrity in recent years, especially during
Austin — Insurance companies, brokers and consumer advocates say a highly publicized national wave of health plan cancellations largely bypassed Texas. There are several complex reasons, but one of the biggest is this: Following the example of Arkansas and other Southern states, the Texas Department of Insurance told health insurers in June that they could compress the contractual period of this year’s policies. That meant they could be renewed late this year. The little-noticed advisory may have steered as many as 2.2 million Texans who are in individual or small-group plans around the federal health care law’s demands for richer
A Republican strategist is reminding his party that President Reagan is dead. Ford O´Connell, who worked on Sen. John McCain´s (R-Ariz.) 2008 presidential campaign, says if Republicans want to win the White House in 2016, they need to break free of the "obsessive Reagan disorder." Rule #1 of the political analyst´s newly released book, "Hail Mary: The 10-Step Playbook for Republican Recovery," is: "Ronald Reagan is dead. Accept it." Such a sentiment is sure to be tough to digest for a party insistent on using the 40th president´s legacy as a GOP litmus test to prove conservative credentials. "The Reagan fixation is a drag
The hits to President Obama´s popularity, prompted by the botched HealthCare.gov rollout, are simply a natural fluctuation every commander-in-chief faces, Obama told interviewer Barbara Walters in an interview aired Friday. "If you remember, I´ve gone up and down pretty consistently throughout," Obama said in the ABC interview on Friday. "But the good thing about when you´re down is that usually you´ve got nowhere to go but up." "I got re-elected in part because people did think I was trustworthy and they knew I was working on their behalf," Obama said in the network´s exclusive. A CNN Poll of Polls complied
The human species began as the hybrid offspring of a male pig and a female chimpanzee, a leading geneticist has suggested. The startling claim has been made by Eugene McCarthy, of the University of Georgia, who is also one of the worlds leading authorities on hybridisation in animals. He points out that while humans have many features in common with chimps, we also have a large number of distinguishing characteristics not found in any other primates. Dr McCarthy says these divergent characteristics are most likely the result of a hybrid origin at some point far back in human evolutionary history. What´s more, he suggests,
WASHINGTON — As a small coterie of grim-faced advisers shuffled into the Oval Office on the evening of Oct. 15, President Obama’s chief domestic accomplishment was falling apart 24 miles away, at a bustling high-tech data center in suburban Virginia. HealthCare.gov, the $630 million online insurance marketplace, was a disaster after it went live on Oct. 1, with a roster of engineering repairs that would eventually swell to more than 600 items. The private contractors who built it were pointing fingers at one another. And inside the White House, after initially saying too much traffic was to blame, Mr. Obama’s
The Washington Examiner recently reported on an academic study on the 2008 presidential election entitled "The Palin Effect" that examined the effect of then Gov. Palin on the John McCain campaign. Its conclusions run counter to conventional wisdom. The cliché, advanced by the media and the now infamous HBO TV show "Game Change," was that Palin helped to cost McCain the election because of her "controversial" personality. In fact, typical of most vice presidential running mates, Palin had a marginal but largely positive effect on McCain´s standing with the voters. She certainly did not drive away independents and moderates, who along
AUBURN, Ala. — In a season of miracles for Auburn, all it has taken is one mistake to give the Tigers life. No. 1 Alabama made just enough of them Saturday to change the course of history. With no time left on the clock, Auburn cornerback Chris Davis caught a 57-yard field goal attempt by Alabama in the back of the end zone, ran it out down the left sideline and went 109 yards untouched to beat the Crimson Tide, 34-28.
He´s a proud family man already, but President Barack Obama will turn to his children when it comes to life after the White House. Sasha Obama could be the deciding factor in whether the first family stay in Washington once he leaves office in three years. In a taped interview with ABC News, the President said his now 12-year-old daughter ´will have a big vote in where we are´ because she will be a sophomore in high school. When Obama leaves office in January 2017 after two terms, eldest daughter Malia could be off in college. Both girls attend the exclusive Sidwell Friends School
Sen. John McCain is starting to sound like a Tea Party “wacko bird.” In a new fundraising letter for the Republican National Committee released Friday, McCain lashed out at “Barack Obama, Harry Reid and Washington liberals,” who he claimed are destroying the United States. Liberals, he warned, “have taken us down a dark and dangerous path defined by record levels of debt, ever-expanding government, and a lead-from-behind defense strategy. There´s not much time left to turn things around.” McCain’s name carries a lot of weight in fundraising because he was the 2008 GOP nominee and is a leading voice of
President Obama took part in Small Business Saturday by heading over to Politics and Prose, a locally-owned bookstore in Washington, D.C. Wearing a brown leather coat and tan sweater, the president mingled with customers and wished them happy holidays. He brought daughters Malia and Sasha, who occasionally left his side to shop as he chatted with others. At the register, when asked what books he purchased, Obama said, “it is a long list ... books for every age group, from 5 to 52.” In all, Obama purchased 21 titles, including, “All That Is” by James Salter; “Collision Low Crossers:
The time has come to end presidential term limits, because continuing the restrictions on how long one can serve in the country´s highest office is bad for the United States, a university professor argued this week. In an opinion piece published in the Washington Post, Jonathan Zimmerman, a history and education professor at New York University, says deciding whether a president deserves a third, fourth or more terms should be left to the American people, not the 22nd Amendment to the Constitution, which placed a two-term limit on the position. As background, here´s an excerpt from the amendment, ratified in
WASHINGTON — After two months of relentless criticism about the troubled rollout of the new federal health care law, Saturday marks the day when President Barack Obama pledged that the flawed website, HealthCare.gov, would be fixed. White House officials say they expect that vow to be fulfilled, at least for the vast majority of Americans who need to access the website to sign up for health insurance. But anything less than success Saturday probably will be a crippling blow in a second term where Obama faces many tough political challenges, from budget battles to negotiations over Iran’s nuclear program. The HealthCare.gov rollout
It only took five years for the American media to get tired of President Obama´s spoon-fed propaganda -- well, at least one aspect of it. Earlier this month, 38 news organizations, including the Associated Press, ABC News, The Washington Post, and Reuters demanded more photojournalist access to the president. The White House responded with what one reporter described as a middle finger. Now some news organizations are responding by formalizing policies not to publish White House-distributed photographs. Last week the USA Today announced that it will not use “handout photos originating from the White House Press Office, except in very