Capital New York

Kebbe commented on Bloomberg: 'Plain and simple,' Congress caused the mortgage crisis, not the banks

Wall street firms replaced the old S&L thrift institutions after the money market funds killed them. When loans were secuitized to get financial economies of scale and maturity features by being CMOs, they also had to get FNMA or FHLMC agency guarantee to get marketability. This required the packagers to follow the recipe laid down by Barney Frank and company.. roughly 50% Community Reinvestment act junk mortgages. Low life origination firms were created to supply these mortgages to that quality loans that were racist could be diluted to meet that recipe. FNMA /FHLMC put their guarantees on $7 trillion of home mortgages. The Excel loan submission for the guarantee was still on FNMA's web site when they went broke, and it had those race, neighborhood, language, columns to be totalled. In the old days at the S&L, a loan committee met and somebody would say, "yes, make that loan ... he was our paper boy and we know his dad."

Posted on November 1st, 2011 11:06pm

Kebbe commented on

Posted on November 1st, 2011 10:48pm