Capital New York

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

I have to laugh. Fannie and Freddy don't write loans. They didn't force any bank to write a loan. THey didn't force securitization. Here are some undisputed facts from the Federal Reserve Board data which show that: • More than 84 percent of the subprime mortgages in 2006 were issued by private lending institutions. (Countrywide, Saxon Mortgage, American Home Mortgage. etc.) • Private firms made nearly 83 percent of the subprime loans to low- and moderate-income borrowers that year. • Only one of the top 25 subprime lenders in 2006 was directly subject to the housing law that's being lambasted by conservative critics. In short, it had nothing to do with FannieMae, FreddieMac or the 1977 CRA law that function brilliantly and, instead, had everything to do with greedy financiers exploiting people not smart/sophisticaed enough to understand what was happening to them...

Posted on November 1st, 2011 6:14pm