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I agree with the conclusion (no bailout), but the canard that Fannie & Freddie were pushed by congress to throw out all underwriting rules & do subprime loans is utterly false (and makes me question the author's knowledge and/or honesty).
Any mortgage underwriter could tell you that the Fannie/Freddie loans they were approving in 2002-2006 were the good ones: full-documentation, meaningful downpayments, etc. The interest-only zero-down stated-income loans were being sold to the unregulated mortgage divisions of Wall Street investment banking companies (Lehman, etc.). As the toxic loans grew, Fannie & Freddie's share of mortgage originations fell from 80+% to 45%. Look it up. Not to mention that many banks (US Bank, Wells & Citi) almost completely steered clear of "reduced documentation" and Option ARMs. That's why they're healthy today. They complied fully with the Community Reinvestment Act without having to resort to doing dumb loans. That proves that neither congress nor the CRA necessitated the rise of dumb mortgage
lending.http://www.cnn.com/2008/POLITICS/09/29/miron.bailout/
И - мне послышалось или кое-то говорил про левых профессоров из Гарварда?
Any mortgage underwriter could tell you that the Fannie/Freddie loans they were approving in 2002-2006 were the good ones: full-documentation, meaningful downpayments, etc. The interest-only zero-down stated-income loans were being sold to the unregulated mortgage divisions of Wall Street investment banking companies (Lehman, etc.). As the toxic loans grew, Fannie & Freddie's share of mortgage originations fell from 80+% to 45%. Look it up. Not to mention that many banks (US Bank, Wells & Citi) almost completely steered clear of "reduced documentation" and Option ARMs. That's why they're healthy today. They complied fully with the Community Reinvestment Act without having to resort to doing dumb loans. That proves that neither congress nor the CRA necessitated the rise of dumb mortgage
lending.http://www.cnn.com/2008/POLITICS/09/29/miron.bailout/
И - мне послышалось или кое-то говорил про левых профессоров из Гарварда?
