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The Fundamentals of the economy are strong!!
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<blockquote data-quote="diesel96" data-source="post: 443414" data-attributes="member: 9859"><p><a href="http://www.commondreams.org/headline/2008/10/24-5" target="_blank">http://www.commondreams.org/headline/2008/10/24-5</a></p><p>quote;</p><p>But Fannie and Freddie aren't lenders, to minorities or anyone else. They purchase loans from private lenders who actually underwrite the loans. In an effort to promote affordable home ownership for minorities and rural whites, the Department of Housing and Urban Development (HUD) set targets for Fannie and Freddie in 1992 to purchase low-income loans for sale into the secondary market that eventually reached 52 percent of loans given to low-to moderate-income families. </p><p>But these loans, and those to low- and moderate-income families, represent a small proportion of overall lending. Between 2004 and 2006, [<strong>prior to the Democratic majority Congress] </strong>when subprime lending was exploding, Fannie and Freddie went from holding 48 percent of the subprime loans to holding about 24 percent. Among the reasons is that Fannie and Freddie were supervised by far more robust standards than most of the unregulated players in the private sector. Most of these unregulated players have now gone bankrupt or are in serious legal trouble. </p><p>During the same three-year period, these same unregulated private investment banks dominated the mortgage loans that were packaged and sold into the secondary mortgage market. According to McClatchy News Service, in 2005 and 2006, the private sector securitised almost two-thirds of all U.S. mortgages, supplanting Fannie and Freddie.</p></blockquote><p></p>
[QUOTE="diesel96, post: 443414, member: 9859"] [URL]http://www.commondreams.org/headline/2008/10/24-5[/URL] quote; But Fannie and Freddie aren't lenders, to minorities or anyone else. They purchase loans from private lenders who actually underwrite the loans. In an effort to promote affordable home ownership for minorities and rural whites, the Department of Housing and Urban Development (HUD) set targets for Fannie and Freddie in 1992 to purchase low-income loans for sale into the secondary market that eventually reached 52 percent of loans given to low-to moderate-income families. But these loans, and those to low- and moderate-income families, represent a small proportion of overall lending. Between 2004 and 2006, [[B]prior to the Democratic majority Congress] [/B]when subprime lending was exploding, Fannie and Freddie went from holding 48 percent of the subprime loans to holding about 24 percent. Among the reasons is that Fannie and Freddie were supervised by far more robust standards than most of the unregulated players in the private sector. Most of these unregulated players have now gone bankrupt or are in serious legal trouble. During the same three-year period, these same unregulated private investment banks dominated the mortgage loans that were packaged and sold into the secondary mortgage market. According to McClatchy News Service, in 2005 and 2006, the private sector securitised almost two-thirds of all U.S. mortgages, supplanting Fannie and Freddie. [/QUOTE]
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