Blog Entry

You know what makes me HOT???

Posted on: October 9, 2008 2:56 pm
Edited on: October 9, 2008 2:58 pm
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Sexy men sure do.  Sexy women absolutely.  People who lie to gain power makes me hot - but this under the collar not where I like it. But what really makes me HOT is when people are too blind to demand the truth and too stupid to ask the right questions.  If you have been paying attention you probably know there is a blame fest in Washington with regards to the credit and banking meltdown.  The other night I heard Obama blame McCain and Bush for the troubles.  I heard McCain blame Democrats.  Blame is not the answer folks.

In the banter and bickering the fourth estate, the press, has failed to ask the right questions.  Failed to get to the bottom of it.  In fact the New York Times has become a Democrat Rag regurgitating party doctrine as gospel and failing to perform any investigation into the mess. The New York Times is fast fading as a journalistic icon, a bastion on truth, they are less reliable than the National Enquirer!  But this is downright ridiculous.  The same paper that is ripping the Republicans for the mess ran this article in 1999.   Look it up, its there.

FANNIE MAE EASES CREDIT TO AID MORTGAGE LENDING By STEVEN A. HOLMES 
New York Times,September 30, 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.

Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.

In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates -- anywhere from three to four percentage points higher than conventional loans.
''Fannie Mae has expanded home ownership for millions of families in the 1990's by reducing down payment requirements,'' said Franklin D. Raines, Fannie Mae's chairman and chief executive officer. ''Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.''

Demographic information on these borrowers is sketchy. But at least one study indicates that 18 percent of the loans in the subprime market went to black borrowers, compared to 5 per cent of loans in the conventional loan market.

In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.

''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.''

Under Fannie Mae's pilot program, consumers who qualify can secure a mortgage with an interest rate one percentage point above that of a conventional, 30-year fixed rate mortgage of less than $240,000 -- a rate that currently averages about 7.76 per cent. If the borrower makes his or her monthly payments on time for two years, the one percentage point premium is dropped.

Fannie Mae, the nation's biggest underwriter of home mortgages, does not lend money directly to consumers. Instead, it purchases loans that banks make on what is called the secondary market. By expanding the type of loans that it will buy, Fannie Mae is hoping to spur banks to make more loans to people with less-than-stellar credit ratings.

Fannie Mae officials stress that the new mortgages will be extended to all potential borrowers who can qualify for a mortgage. But they add that the move is intended in part to increase the number of minority and low income home owners who tend to have worse credit ratings than non-Hispanic whites.

Home ownership has, in fact, exploded among minorities during the economic boom of the 1990's. The number of mortgages extended to Hispanic applicants jumped by 87.2 per cent from 1993 to 1998, according to Harvard University's Joint Center for Housing Studies. During that same period the number of African Americans who got mortgages to buy a home increased by 71.9 per cent and the number of Asian Americans by 46.3 per cent.

In contrast, the number of non-Hispanic whites who received loans for homes increased by 31.2 per cent.

Despite these gains, home ownership rates for minorities continue to lag behind non-Hispanic whites, in part because blacks and Hispanics in particular tend to have on average worse credit ratings.

In July, the Department of Housing and Urban Development proposed that by the year 2001, 50 percent of Fannie Mae's and Freddie Mac's portfolio be made up of loans to low and moderate-income borrowers. Last year, 44 percent of the loans Fannie Mae purchased were from these groups.

The change in policy also comes at the same time that HUD is investigating allegations of racial discrimination in the automated underwriting systems used by Fannie Mae and Freddie Mac to determine the credit-worthiness of credit applicants.

Now which is it New York Times?  Is it Bush's fault?  Is it the Republican's fault?  Is it the Democrat's fault?  You are irrelevant!! Americans- Stop expecting government to solve your problems.  Take responsibility for your actions.  Stop spending money you don't have.  Hold your politicians accountable for their spending. Vote them all out of office.  For everyone who added pork to the bailout bill - you should be recalled immediately for your reprehensible behavior and greed.  It was not that long ago when a poor person had too much pride to even ask for help.  In 2008 there is nothing a poor person is NOT entitled to and they have very little if any pride.  Work for your living. I think I am going to makes some love now. Smorgie
 
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Comments

Since: Jul 17, 2008
Posted on: October 22, 2008 11:30 pm
 

You know what makes me HOT???

We need to do 4 things:

1) in our 401(k), we are owners of many corporations.  We need to tell the companies' boards of directors that the "good ol' boy" network is dead.  A local pastor, a union representative, and someone from the secretary pool should be on the BOD.  And the compensation committee recommendations will now be voted on at every annual meeting by the owners.

2) Term limits must be implemented.  Senators, max. of 2 terms.  Reps, max. of 4 terms.  No more life-long politicians (McCain and Biden are both 25+ year members of the Senate). 

3) Congressional subcommittees must rotate their membership every year.  Members can serve for a maximum of only 3 years.  How many congressmen serve on committees forever, receiving favors and preferential treatment?  Enough.

4) Campaign finance spending caps must be enforced.  Obama will spend over $500 million in this campaign.  Think about that number!  All of the Prez candidates together will spend about $1.0 billion for the 2008 election - that is just the national race.  Starting in 2012, candidates should be limited to $100m for national office (for the entire election cycle - not just per year).  State races (Senate and House) are capped at $15m per election cycle.  Spend wisely.  Debate the issues.  No more bashing each other.

The politicians were s'posed to be protecting us from greedy corporations.  Sarbanes - Oxley legislation did not prevent the Financial meltdown, or the fraud imposed by the higher-ups in the Petters Group.  You can't legislate morality or ethics in the corporations or in the government.  Limiting their time in office and in committees just might do the trick.




Since: Dec 31, 2007
Posted on: October 13, 2008 12:24 pm
 

You know what makes me HOT???

relevance to sports?? i dont come on here and read blogs about politics, im sure there are plenty of sites where you can debate to your hearts content. otherwise stick to sports or blogs about this love making your talkin about..

Well you're a liar.



Since: Aug 14, 2007
Posted on: October 11, 2008 6:26 pm
 

You know what makes me HOT???

relevance to sports?? i dont come on here and read blogs about politics, im sure there are plenty of sites where you can debate to your hearts content. otherwise stick to sports or blogs about this love making your talkin about..



Since: May 14, 2008
Posted on: October 11, 2008 8:53 am
 

You know what makes me HOT???

Hey,

      Interesting perception you have on both men and women.  However, what makes you even more intriguing is your intellengence. 

 

Hope to hear from you soon,

David




Since: Jul 17, 2008
Posted on: October 11, 2008 7:48 am
 

You know what makes me HOT???

Americans- Stop expecting government to solve your problems.  Take responsibility for your actions.  Stop spending money you don't have. 

Just following a good idea. 

We need to put term limits on every federal government, elected position.  Barney Frank has been on the House Banking subcommittee since the mid-90's I think!  That is ridiculous...

If your Senator has been in office for 2 terms - vote him/her out.  If your HOR has been in office for 4 terms (8 years), vote them out!  Enough is enough... especially if they voted for that pork-filled SPA-trip bailout that will cost US taxpayers over 900bn when all the counting is done. 

Disgusted in the Land of 12,000 Lakes (may have to sell a few to the Canadians, eh?)




Since: May 28, 2008
Posted on: October 10, 2008 2:44 pm
 

You know what makes me HOT???

I'm with you and Smorgie, preferably between the two of you, LOL. I agree that we are being lied to and that nobody really knows what is going on in the white house nor do I necessarily want to know. Our Presidents may be the biggest liars of all. It's a tough fact to face, but as stated in the movies..."You want the truth? You can't handle the truth!"



Since: Mar 11, 2008
Posted on: October 10, 2008 11:59 am
 

You know what makes me HOT???

I'm in, Lets all get naked!

I'll bring the beer!




Since: Oct 14, 2006
Posted on: October 10, 2008 8:40 am
 

You know what makes me HOT???

I'm with Smorgie let's all go make some love!!!

 


 

I'm!!! in who's with me!!




Since: Mar 6, 2007
Posted on: October 9, 2008 10:10 pm
 

You know what makes me HOT???

I would tap that ars!




Since: Oct 19, 2007
Posted on: October 9, 2008 5:36 pm
 

You know what makes me HOT???

Welcome back Smorgie with another nice blog,

I've always wondered how much government pressure Fannie and Freddie were under to buy sub prime mortgages in the secondary market.  Lending standards should never have been "means tested".  From a business perspective, having different standards for different income levels makes no sense.  Regardless of your color or ethnic background, it should be your personal balance sheet, income statement, credit rating, ability to make a 20% down payment (yes, I said 20% downpayment), and home appraisal that determines how much the bank is willing to lend. 

For the Department of Housing and Urban Development to suggest that 50% of Fannies mortages should be from low - moderate incomes, and by the way that means more hispanics and blacks, is outrageous.  

Smorgie, your point about accepting individual responsibility for your actions is right.  This problem never would have happened if each and everyone of us individually did not extend beyond our means.  But let's get real.  It was / is also wrong for banks to encourage people to buy more than what they could afford just because they could unload the risk at a discount to Freddie.  It was equally wrong for Freddie to inventory and resell these overvalued mortgages.  There is plenty of blame to go around.

Smorgie, btw, I hope you had a nice afternoon delight! 



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