Upcoming Classes

Search CFLA's Article Archive:

Guest Commentary Big Government, Progressive Politics Caused Mortgage Crisis

naplesnews.comSept 26, 2012

By Stephen Unger Naples

Having spent 40 years on Wall Street, I had a ringside seat to watch the financial crisis unfold over many years.

The Bush administration was not at fault, but Barack Obama was an important contributor.

Let me explain.

President Franklin Roosevelt created Fannie Mae in 1935 to free up bank capital; Freddie Mac came later.

In 1968, President Lyndon Johnson, wanting to remove Fannie Mae from the government balance sheet, made it a public company, thereby socializing its risks and privatizing its profits.

The Community Reinvestment Act (1977), meant to encourage lending to high-risk borrowers, often minorities, allowed radical groups like ACORN — Association of Community Organizations for Reform Now — to force banks to make subprime loans.

The landmark case, Buycks-Roberson vs. Citigroup (Chicago, 1994), alleged discriminatory mortgage lending against minorities, with then-attorney Barack Obama suing with ACORN.

Loan applications from Citibank showed poor credit histories and prior defaults.

The case settled in 1998 but the die was cast.

Under President Bill Clinton, the Department of Housing and Urban Development relaxed credit standards, requiring banks to make a requisite number of loans to low- and moderate-income borrowers. In 2000, Clinton effectively deregulated credit-default swaps which led later to AIG's insolvency.

In 2005, the Senate Banking Committee tried to reform Fannie Mae and Freddie Mac, but were blocked by Democrats.

Fannie and Freddie's growth fueled Wall Street's securitization of subprime loans (rated by incompetent agencies) by becoming the primary customers of AAA-rated subprime mortgages.

By late 2006, they constituted almost half of all housing loans. The inevitable defaults and crisis followed.

Big government policies and "progressive" politics were the cause.


Back to September 2012 Archive

CFLA was founded by the Nation's Leading Foreclosure Defense Attorneys back in 2007 to serve the Foreclosure Defense Industry and fight pervasive Bank Fraud. Since opening our virtual doors, CFLA has rapidly expanded to become the premier online legal destination for small businesses and consumers. But as the company continues to grow, we're careful to hold true to our original vision. For us, putting the law within reach of millions of people is more than just a novel idea—it's the founding principle, just ask Andrew P. Lehman, J.D.. With convenient locations in Houston and Los Angeles, you can contact Our National Account Specialist and General Manager / Member Damion W. Emholtz at 888-758-2352 for a free Mortgage Fraud Analysis or to obtain samples of work product, including cutting edge Bloomberg Securitization Audits, Litigation Support, Quiet Title Packages, and for more information about our Nationally Accredited and U.S. Department of Education Approved "Mortgage Securitization Analyst Training Certification" Classes (3 days) 24 hours for approved CLE & MCLE Credit (Now Available Online).

SEE BELOW- http://www.certifiedforensicloanauditors.com

Call us toll free at 888-758-2352

Bookmark and Share
spacer
Facebook Like us on Facebook
Twitter Follow us on Twitter
YouTube View our YouTube Videos
LinkedIn Connect to us on Linkedin
 
BBB Logo

 

spacer
Contact us or view our Sample Documents & Audits by completing the form below.

  • Reload
  • Should be Empty:





 

DVD Sets Only $99

 

FREE Mortgage Fraud Analysis

 

Order Cutting-Edge Services Now

 

Quiet Title Packages from Licensed Attorneys

 

Affiliate Services

 

CFLA Sponsored Attorney Links

 

Take-Home Education Package

 

ALB Law Firm

 

Advocate Legal

 

The True News Network

 

Rubenstein Business Law

 

Atighechi Law Group

 

Scunziano & Associates

 

Get Certified to Perform Mortgage Securitization Audits

 

CFLA Training Academy

 

Expert Witness Services

 

Cutting Edge Expert Securitization Reports

 

CFLA Credit Cards

 

Breaking News

 

Letters to the Editor

 

CFLA Weekly Newsletters

 

Code of Ethics

 

Testimonials

 

Instructional Videos

 

Job Opportunities

 

License Opportunities

 

MARS Rule

 

Product Samples

 

Resource Links

 

Servicer Information

 

Foreclosure Laws

 

REST Report

 

Quiet Title Packages from Licensed Attorneys

 

Advertise on CFLA

 

Advertising Space: Mortgage Securitization, Quiet Title

 

Certified Forensic Loan Auditors, LLC
13101 West Washington Blvd.
Suite 444
Los Angeles, CA 90066

Toll Free: 888-758-CFLA (2352)
Mobile Users: CLICK TO CALL
info@certifiedforensicloanauditors.com

   
 
CFLA IS NOT A LAW FIRM AND DOES NOT PROVIDE ANY LEGAL ADVICE. CFLA DOES NOT OFFER FORECLOSURE CONSULTING OR FORECLOSURE RELIEF
SERVICES. CFLA DOES NOT OFFER OR ASSIST WITH ANY LOAN MODIFICATION SERVICE. CFLA ALWAYS RECOMMENDS THAT CLIENTS RETAIN COMPETENT COUNSEL IN THEIR RESPECTIVE JURISDICTION. CFLA HAS A FREE PROGRAM TO REFER CFLA CLIENTS TO LAW FIRMS IN NEARLY EVERY STATE AND CFLA
DOES NOT CHARGE OR OBTAIN REFERRALS FEES FOR THESE SERVICES. SERVICES NOT OFFERED TO RESIDENTS OF THE STATE OF NEVADA.

 
Home About Us Privacy Policy Terms of Service Disclaimer SERVICES Careers Contact Us
 
COPYRIGHT © 2013 . - All rights reserved.