Fannie Mae Eases Credit To Aid Mortgage Lending (1999)

In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.

The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.

FULL STORY AT:
query.nytimes.com...

I did a search and could not find this posted anywhere, if I am mistaken then mods please delete/lock this thread.

This could help explain why the mortgage crisis has happened. With the government forcing banks to lend out loans to "minorities and low-income consumers" who could obviously not make their payments, it only goes to say that this idea would end in disaster. I suppose back in the 1999 it wouldn't matter but he, as long as the media doesn't bring this up now that it is happening, those who were responsible may never be brought fourth to justice.

Your thoughts?

reply to post by OKCBtard


Yo man so it was really the Clinton Administration and not the Bush war machine?

reply to post by YHSBtard


I am not too sure that that is the point of the article. I was thinking more of how it set the stage for what is currently happening.