Democrat Corruption at Full Tilt. The Full on Theft at Fannie and Freddie

Sep 2006
Houston, Tx
SEC Charges Former Fannie Mae and Freddie Mac Executives with Securities Fraud; Release No. 2011-267; December 16, 2011

"Washington, D.C., Dec. 16, 2011 — The Securities and Exchange Commission today charged six former top executives of the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) with securities fraud, alleging they knew and approved of misleading statements claiming the companies had minimal holdings of higher-risk mortgage loans, including subprime loans."

[FONT=Verdana, Geneva, Arial, Helvetica, sans-serif]In 1991, the Democrat James Johnson ran Fannie Mae, and pushed for a lowering of their standards when it came to the buying up of mortgages. It was their new " Housing Mission" and it started the GSE's off with a minimum quota of 30%. That's out of all of the loan they purchased, 30% had to be from low income borrowers.

The beginning of the Sub-Prime Bubble possibly, but even with the new quota, without a massive false narrative of supposed discriminatory practices, and a strengthening of the CRA rules, an increase in actual loans to low income lendees never really got off the ground. That is until 1994, when Clinton and Henry Cisneros rammed the 1995 Homeowners strategy down the American Public's throats.

It was essentially a long list of executive orders....
In the Spring and Summer of 1994, Secretary Henry Cisneros met with leaders of major national organizations from the housing industry to solicit their views about establishing a national homeownership partnership.” - HUD, "Partners in the American Dream", May 1995 “In 1994, at the President’s request, the U.S. Department of Housing and Urban Development (HUD) began work to develop a National Homeownership Strategy with the goal of lifting the overall homeownership rate to 67.5 percent by the end of the year 2000. While the most tangible goal of the National Homeownership Strategy was to raise the overall homeownership rate, in presenting the strategy HUD pointed explicitly to declines in homeownership rates among low-income, young, and minority households as motivation for these efforts.” - U.S. Department of Housing and Urban Development Office of Policy Development and Research website""At the request of President Clinton, HUD is working with dozens of national leaders in government and the housing industry to implement the National Homeownership Strategy, an unprecedented public-private partnership to increase homeownership to a record-high level over the next 6 years.” - Urban Policy Brief Number 2, August 1995“Federal institutions, policies, and programs alone cannot meet President Clinton's goal of record-high levels of homeownership within the next 6 years. HUD has forged a nationwide partnership that will draw on the resources and creativity of lenders, builders, real estate professionals, community-based nonprofit organizations, consumer groups, State and local governments and housing finance agencies, and many others in a cooperative, multifaceted campaign to create ownership opportunities” - The National Homeownership StrategyAction 11: Removing Barriers to Mortgage Financing for Starter HomesAction 29: Alternative Approaches to Homebuying Transactions Action 35: Home Mortgage Loan-to-Value FlexibilityAction 36: Subsidies to Reduce Downpayment and Mortgage CostsAction 44: Flexible Mortgage Underwriting CriteriaAction 45: Public-Private Leveraging for Affordable Home Financing By 1996, HUD was directing the GSE's to provide at least 42% of their mortgage financing to low-income borrowers and 12% of their portfolios to “special affordable” loans. NOT BUSH'S GREAT RECESSION, CLINTONS GREAT RECESSION.... "This unprecedented public-private partnership is founded on a deeply rooted and almost universally held belief that homeownership provides important advantages that merit continued public support. The National Homeownership Strategy cites four fundamental benefits:” Urban Policy Brief Number 2, August 1995 "Through homeownership, a family...invests in an asset that can grow in value and... generate financial security.""Homeownership enables people to have greater control and exercise more responsibility over their living environment.""Homeownership helps stabilize neighborhoods and strengthen communities.""Homeownership helps generate jobs and stimulate economic growth."[FONT=Verdana, Geneva, Arial, Helvetica, sans-serif]Increased quotas and Clinton's own corrupt appointees allowed the two largest GSE's, Fannie and Freddie, to commit securities fraud on a unprecedented scale with the charge that Fannie and Freddie had been misrepresenting their collateral and the value of their securities all along. Manipulating the market and the value of their " AAA " Securities.

Of-Course, the 6 executives walked away with fines, and the most corrupt CEO in American History, Franklin Raines walked away a Millionaire.

Well, it took 3 year for the SEC to out just some of the corruption that happened at the Democrat run and Democrat PROTECTED GSE's, and to this day Fannie and Freddie will NOT give a line by line accounting of all their debt ( I wonder why, we took them into Conservatory in 2008 ).

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5.6 trillion in Sub-Prime, ALT-A and CRA and NINA loans were taken on by the US Government in 2008, the sum-total of Fannie's an Freddie's corruption, and people complain about TARP, which most of which has been re-payed.

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