Quote:
Originally Posted by Dundars
we are just bailing out the 7-8% of irresponsible people and irresponsible banks that were forced into making those risky mortgages by Clinton. Most of those same people are driving new cars and what not. People need to realize nothing is going to last forever and have to live within their means in case they happen to lose their job.
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You are stupid.
Please tell me how Clinton made banks grant loans to people. He has nothing to do with it. I work for the regulator of credit unions and I deal with the financial institutions everyday. No places were "forced" to make loans by Clinton and neither party has anything to do with the mortgage crisis. Banks and credit unions develope their own underwriting criteria and the Clinton administration had no control over the loans being granted by them. The real problem with the mortgage crisis was that values were going up so quick that banks were being a little more relaxed with their underwriting criteria since they wouldn't have to worry about losing money. If they were to foreclose, they would have been able to make money on the properties instead of discount them heavily to get rid of them.
The reason the FHLB even exists is to buy loans from financial institution so they would be able to continue lending to qualified members. Institutions get money for originating and servicing the loan, get the ability to make more loans, increase their liquidity and not have as much interest rate risk.
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