Repugs Doing Their Pravda Ideology Again

[boutons_deux]

four Republican ... eschewing any accusations of Wall Street recklessness

and

putting

all the blame for the financial crisis squarely on the government's efforts to increase homeownership through the 1977Community Reinvestment Act

and

the subsidization of low interest mortgages through Fannie Mae and Freddie Mac.

four Republican commissioners voted to ban the words

"shadow banking,"

"Wall Street,"

"interconnected"

and

"deregulation"

from the entire panel's final report.

http://www.salon.com/technology/how_...ion/index.html

=========

The Language Police whose vocabulary is All Lies, All The Time

Just The Lies, Ma'am, Nothing But The Lies

[Winehole23]

So much for a Pecora Commission redux.

[boutons_deux]

The Repug CRAp/F&F is easily and widely discredited.

"I think we can give Fannie and Freddie their due share of responsibility for the mess we're in, while acknowledging that they were nowhere near the biggest culprits in the recent credit bubble. They may finance most of the home loans in America, but most of the home loans in America aren't the problem; the problem is that very substantial slice of home loans that went outside the Fannie and Freddie box ...

Fannie and Freddie had about as much to with the "explosion of high-risk lending" as they could get away with. We are all fortunate that they couldn't get away with all that much of it. It is a fact that their market share dropped like a brick in the early years of this century, except of course for years like 2003, when fixed rates dropped to cyclical lows, refis boomed, and GSE market share shot up again, only to plummet in the years following during the purchase boom.

But they didn't like losing their market share, and they pushed the envelope on credit quality as far as they could inside the constraints of their charter: they got into "near prime" programs (Fannie's "Expanded Approval," Freddie's "A Minus") that, at the bottom tier, were hard to distinguish from regular old "subprime" except--again--that they were overwhelmingly fixed-rate "non-toxic" loan structures. They got into "do entation relief" in a big way through their automated underwriting systems, offering "low doc" loans that had a few key differences from the really wretched "stated" and "NINA" crap of the last several years, but occasionally the line between the two was rather thin. Again, though, whatever they bought in the low-doc world was overwhelmingly fixed rate (or at least longer-term hybrid amortizing ARMs), lower-LTV, and, of course, back in the day, of "conforming" loan balance, which kept the worst of the outright fraudulent loans out of the pile. Lots of people lied about their income (with or without collusion by their lender) in order to borrow $500,000 to buy an overpriced house in a bubble market. They weren't borrowing $500,000 from the GSEs."

And we know that the govt can force banks to do anything now (like re-write mortgages) and never were able force regulated banks to write CRA mortgages.

Repug And Fox Repug Propaganda Lies, Nothing But Lies.

[xrayzebra]

Move back to Germany. You have been coop'd