[OFB Cafe] The Housing Crisis - Some FACTS

[Fred Smith]

On Thu, Oct 2, 2008 at 5:19 PM, Fred A. Miller <fmiller at lightlink.com> wrote:
> Check out this website and its video for objective facts on who was
> involved with the housing crisis we are now facing.  The housing crisis
> triggered the economic collapse we are facing too.  The video is fast
> paced so be prepared to click pause so you can see the documents.  They
> document every statement they make.  Democrats won't like it but this
> has NO spin.

No spin, but a whole lot of absolute lies.  Your video claims that the
CRA was responsible for sub prime mortgages, but the truth of the
matter is that the CRA had nothing to do with it.  Here's some facts:

1) the CRA didn't affect a full 80% of sub-prime lenders, because
those lenders were either mortgage service companies or thrifts, which
are not subject to federal oversight.

2) The CRA doesn't require 0% down loans, loans without income or
credit verification, or loans in excess of 120% of the value of the
property.  That's entirely the lender's doing, not any federal
regulation.

3) Federal regulations didn't require that banks issue interest only
loans.  Those beauties were entirely the product of the lender's
imaginations.

Your video also claims that the Democrats stopped legislation that
would regulate Fannie Mae in 2003 and again in 2005.  Unfortunately
for that bullshit accusation, Republicans were in control of the House
and the Senate from 1995 through 2007. The democrats didn't have the
power to stop legislation at that time.