That year [2001], Freddie bought $18.6 billion in subprime loans; Fannie did not disclose its number.
In 2001, HUD researchers warned of high foreclosure rates among subprime loans.
"Given the very high concentration of these loans in low-income and African American neighborhoods, the growth in subprime lending and resulting very high levels of foreclosure is a real cause for concern," an agency report said.
But by 2004, when HUD next revised the goals, Freddie and Fannie's purchases of subprime-backed securities had risen tenfold. Foreclosure rates also were rising.
Like I said naive. I will now add delusional and narrow minded.
Sad man you are. 
Weren't a lot of these mortgage applications forged or used false information, such as lying about income or liquid assets, by mortgage lenders BEFORE they were sold to Fannie and Freddy?
I might be wrong on that though.
100% correct.
All fraud, however, was committed because the "fraudsters" knew they could sell the worthless paper to the taxpayers (freddie and fannie).
No one would loan their money to someone they knew could not pay it back. (FREE MARKET)
Lots of people would loan someone elses money to anyone if they knew they could sell said loan at a profit before the first payment was due. (SOCIAL ENGINEERING)
100% correct.
All fraud, however, was committed because the "fraudsters" knew they could sell the worthless paper to the taxpayers (freddie and fannie).
No one would loan their money to someone they knew could not pay it back. (FREE MARKET)
Lots of people would loan someone elses money to anyone if they knew they could sell said loan at a profit before the first payment was due. (SOCIAL ENGINEERING)
So if Fannie and Freddy were lied to on paper work, how could it be their fault? And in turn, was anyone prosicuted for lying on paperwork? If not, then why?
So if Fannie and Freddy were lied to on paper work, how could it be their fault? And in turn, was anyone prosicuted for lying on paperwork? If not, then why?
They didnt worry about reviewing the paper work or scrutinizing any thing because...Mortgages are not "risky"
Yeah, your right. I forgot about that year & a half when that repub switched over to side with dems. Sorry, my bad as they say. I hope you don't throw that "lying" word around as lightly & loosely as you do here, cuz where I come from you'd get the shit beat out of you pretty quick. I'm sure you don't -
Scott Simon was one of those buyers. He works in the mortgage department at Pimco, the world's largest bond manager, and one of the biggest buyers of Fannie and Freddie securities:
"Fannie and Freddie in meetings with investors, whether it was us or anybody else, essentially just would sort of laugh and say, 'Well, you know the government will stand behind us,'" Simon says.
Scott Simon was one of those buyers. He works in the mortgage department at Pimco, the world's largest bond manager, and one of the biggest buyers of Fannie and Freddie securities:
"Fannie and Freddie in meetings with investors, whether it was us or anybody else, essentially just would sort of laugh and say, 'Well, you know the government will stand behind us,'" Simon says.
--------
In other words, federal housing policy instructed that "afforadble housing" was the goal. The "affordable housing" instrument was subprime mortgages. The federal government told these mortgage companies, "hey, if anything goes wrong, we'll be here to bail you out"
In turn, a bunch of mortgage companies made loans to people who couldn't afford a house. When the borrowers defaulted, just as promised, the government bailed them out.
And that is exactly what happened.
You blame the democrats, but when this was going down and they got bailed out who was president? Was he a democrat? Hmmmm
Name calling? I was simply using adjectives that describe you. Names are nouns, or can be proper nouns.
Looks like you missed that day in 5th grade english. Thanks for participating.
Scott Simon was one of those buyers. He works in the mortgage department at Pimco, the world's largest bond manager, and one of the biggest buyers of Fannie and Freddie securities:
"Fannie and Freddie in meetings with investors, whether it was us or anybody else, essentially just would sort of laugh and say, 'Well, you know the government will stand behind us,'" Simon says.
Fannie and Freddie "made no progress in civilizing the market," said Sandra Fostek, a senior regulator at HUD.
William C. Apgar Jr., who was an assistant HUD secretary under Clinton, said he regrets allowing the companies to count subprime securities as affordable.
And look what happened:
Consumer advocates warned that lenders were trapping borrowers with low "teaser" interest rates and ignoring borrowers' qualifications.
OOPS!
Thanks Barney!
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