Wow. You resorted to HA HA in every post. Sad. The bet was no posting in poly forum for a year. Wonder why you didn't say a word to dave007 when he lost a bet to me for same thing and still posted about politicsin other parts of the forum. Acebb hypocrisy strikes again. Please stop sticking your chin out.
Of course I understand what it does. I also understand what private mortgage lenders did during the crisis. In fact they took so much market share from Fannie and Freddie that F&F had to go to the government to beg for them to let them reduce their lending standards because the private mortgage lenders were just giving away mortgages like candy on Halloween.
Sure they do...
The GSEs participated in the expansion of subprime and other risky mortgages,
but they followed rather than led Wall Street and other lenders in the rush for fool’s
gold. They purchased the highest rated non-GSE mortgage-backed securities and
their participation in this market added helium to the housing balloon, but their purchases
never represented a majority of the market. Those purchases represented 10.5%
of non-GSE subprime mortgage-backed securities in 2001, with the share rising to
40% in 2004, and falling back to 28% by 2008. They relaxed their underwriting standards
to purchase or guarantee riskier loans and related securities in order to meet
stock market analysts’ and investors’ expectations for growth, to regain market share,
and to ensure generous compensation for their executives and employees—justifying
their activities on the broad and sustained public policy support for homeownership.
http://fcic-static.law.stanford.edu/cdn_media/fcic-reports/fcic_final_report_conclusions.pdf
They literally say that they relaxed their underwriting standards in the search for fools gold, lmao!!! That's how bad it was.
From 2005 to 2007, Fannie and Freddie bought approximately $1 trillion in sub-prime and Alt-A loans. This amounted to about 40 percent of their mortgage purchases during that period. Moreover, Freddie purchased an ever-increasing percentage of Alt-A and sub-prime loans for each year between 2004 and 2007.
=====
Fannie Mae underwriting guidelines are guidelines that state which mortgages are acceptable for packaging by lenders in preparation for sale to Fannie Mae. It is a common practice among lenders to package bundles of mortgage loans and sell them to companies like Fannie Mae while still retaining the servicing of the loans.Fannie Mae purchases bundles of conforming loans from lenders. Conforming is a word used to describe loans that follow the Fannie Mae underwriting guidelines.
Fannie Mae's guidelines were set by OFHEO.
=====
Fannie Mae underwriting guidelines are guidelines that state which mortgages are acceptable for packaging by lenders in preparation for sale to Fannie Mae. It is a common practice among lenders to package bundles of mortgage loans and sell them to companies like Fannie Mae while still retaining the servicing of the loans.Fannie Mae purchases bundles of conforming loans from lenders. Conforming is a word used to describe loans that follow the Fannie Mae underwriting guidelines.
Fannie Mae's guidelines were set by OFHEO.
More absolutely damning evidence for you to swallow, lol. How do you take these beatings so easily? Don't you have any pride?
We conclude collapsing mortgage-lending standards and the mortgage securitization
pipeline lit and spread the flame of contagion and crisis. When housing
prices fell and mortgage borrowers defaulted, the lights began to dim on Wall Street.
This report catalogues the corrosion of mortgage-lending standards and the securitization
pipeline that transported toxic mortgages from neighborhoods across America
to investors around the globe.
Many mortgage lenders set the bar so low that lenders simply took eager borrowers’
qualifications on faith, often with a willful disregard for a borrower’s ability to
pay. Nearly one-quarter of all mortgages made in the first half of were interestonly
loans. During the same year, of “option ARM” loans originated by Countrywide
and Washington Mutual had low- or no-documentation requirements.
These trends were not secret. As irresponsible lending, including predatory and
fraudulent practices, became more prevalent, the Federal Reserve and other regulators
and authorities heard warnings from many quarters. Yet the Federal Reserve
neglected its mission “to ensure the safety and soundness of the nation’s banking and
financial system and to protect the credit rights of consumers.” It failed to build the
retaining wall before it was too late. And the Office of the Comptroller of the Currency
and the Office of Thrift Supervision, caught up in turf wars, preempted state
regulators from reining in abuses.
http://fcic-static.law.stanford.edu/cdn_media/fcic-reports/fcic_final_report_conclusions.pdf
We conclude collapsing mortgage-lending standards and the mortgage securitization
pipeline lit and spread the flame of contagion and crisis. When housing
prices fell and mortgage borrowers defaulted, the lights began to dim on Wall Street.
This report catalogues the corrosion of mortgage-lending standards and the securitization
pipeline that transported toxic mortgages from neighborhoods across America
to investors around the globe.
Many mortgage lenders set the bar so low that lenders simply took eager borrowers’
qualifications on faith, often with a willful disregard for a borrower’s ability to
pay. Nearly one-quarter of all mortgages made in the first half of were interestonly
loans. During the same year, of “option ARM” loans originated by Countrywide
and Washington Mutual had low- or no-documentation requirements.
These trends were not secret. As irresponsible lending, including predatory and
fraudulent practices, became more prevalent, the Federal Reserve and other regulators
and authorities heard warnings from many quarters. Yet the Federal Reserve
neglected its mission “to ensure the safety and soundness of the nation’s banking and
financial system and to protect the credit rights of consumers.” It failed to build the
retaining wall before it was too late. And the Office of the Comptroller of the Currency
and the Office of Thrift Supervision, caught up in turf wars, preempted state
regulators from reining in abuses.
http://fcic-static.law.stanford.edu/cdn_media/fcic-reports/fcic_final_report_conclusions.pdf
You're not understanding.
From 2005 to 2007, Fannie and Freddie bought approximately $1 trillion in sub-prime and Alt-A loans. This amounted to about 40 percent of their mortgage purchases during that period. Moreover, Freddie purchased an ever-increasing percentage of Alt-A and sub-prime loans for each year between 2004 and 2007.
It is a common practice among lenders to package bundles of mortgage loans and sell them to companies like Fannie Mae while still retaining the servicing of the loans.Fannie Mae purchases bundles of conforming loans from lenders. Conforming is a word used to describe loans that follow the Fannie Mae underwriting guidelines.
Here is a good one on what Fannie started doing in response to Subprime loans
http://www.npr.org/blogs/money/2011...ng-prophecy-the-bailout-of-fannie-and-freddie
http://www.npr.org/blogs/money/2011...ng-prophecy-the-bailout-of-fannie-and-freddie
