Fannie Mae Freddie Mac Barack Obama & John McCain

[maladroit]

HUD Testimony - Statement of HUD Secretary Alphonso Jackson, before the U.S. House Committee on Financial Services, 4/13/05

Statement of The Honorable Alphonso Jackson, Secretary, United States Department of Housing and Urban Development, before the United States House of Representatives Committee on Financial Services

April 13, 2005

INTRODUCTORY COMMENTS

Chairman Oxley, Ranking Member Frank, Distinguished Members of the Committee:

I welcome the opportunity to join Secretary Snow in discussing the Administration's views on how best to improve and reform regulatory oversight of the housing government-sponsored enterprises, or GSEs.

The President has set an ambitious goal: to build an ownership society where everyone has a chance to own a home and a retirement account or health care plan, and to gain a permanent stake in the American Dream. Ownership brings stability to our neighborhoods and security to our families. To build an ownership society, the President is committed to helping even more Americans buy homes. That commitment is embodied in the President's challenge to the housing industry to join with us in creating 5.5 million new minority homeowners by the end of this decade. It is embodied in the Blueprint for the American Dream Partnership, through which HUD has brought together the private sector, not-for-profits, and government agencies to meet the President's challenge.
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The (Bush) Administration strongly supports retaining a core element of oversight of Fannie Mae and Freddie Mac - setting and enforcing the affordable housing goals - at HUD. Congress established the housing goals to ensure that these GSEs fulfill their mandate to provide leadership to the mortgage market. The goals direct Fannie Mae and Freddie Mac to serve low- and moderate-income families and provide funding in underserved areas, such as central cities and rural areas. A third goal directs these GSEs to finance housing for very low and low-income families in low-income areas.
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We also consider it important that fair housing requirements and enforcement that pertain to the housing GSEs remain at HUD, given HUD's expertise in fighting housing discrimination. HUD should have full enforcement power for those authorities, in the same way it enforces the Fair Housing Act. Secretary Snow testified about additional powers for the new regulator, and I would add one more - allowing the regulator to establish the conforming loan limits on a local basis each year, using the best available data, to more appropriately serve low- and moderate-income families.
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Let me stress that we believe such a comprehensive change to the regulatory structure will boost the confidence of all GSE stakeholders. Investors will be better protected under a regulatory system that empowers the regulator to do the job we expect of themâ?¦ and Americans will ultimately benefit. At the same time, we will strengthen the GSEs' ability to serve low- and moderate-income families pursuing affordable homeownership.


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alphonzo jackson was appointed HUD secretary by george bush (his former neighbour)...jackson resigned under a corruption scandal in early 2008, after which President Bush said in a statement, Jackson "made significant progress in transforming public housing, revitalizing and modernizing the Federal Housing Administration, increasing affordable housing, rebuilding the Gulf Coast, decreasing homelessness, and increasing minority homeownership."

ya did a heckuva job, fonzi!

[psychocat]

I am but a simple man but !

The US goverment proposes to bail out private financial institutions after the said businesses made incredibly stupid mistakes and lost untold amounts of money.
They then plan on employing the same money men to manage the money all over again ???????
WTF ????
Am I the only one who can see the fatal flaw in that plan.
By bailing out these businesses the goverment is saying "it's okay to fuck yourselves to the tune of billions of dollars because we will come to your rescue.
Do you think I could get them to back me for the next European Poker Tournament. :thumbsup:

[Psycho4Bud]

I am but a simple man but !

The US goverment proposes to bail out private financial institutions after the said businesses made incredibly stupid mistakes and lost untold amounts of money.
They then plan on employing the same money men to manage the money all over again ???????
WTF ????
Am I the only one who can see the fatal flaw in that plan.
By bailing out these businesses the goverment is saying "it's okay to fuck yourselves to the tune of billions of dollars because we will come to your rescue.
Do you think I could get them to back me for the next European Poker Tournament. :thumbsup:

NO SHIT!:thumbsup: Probably one of the big reasons why this bill didn't pass....at least I hope so.

Have a good one!:s4:

[GoldenBoy812]

McCain said. â??I said two years ago that the Fannie and Freddie thing was a very serious problem and we had to work on it. And I have always opposed greed of Wall Street and I know how we can fix this.â?�

McCain echoed his remarks later in the day during a speech in Tampa, saying, â??Two years ago, I warned the administration and the Congress that Fannie Mae and Freddie Mac needed to be fixed. It turns out, the problem was even bigger. They waited too long, and now we have a housing crisis, three bailouts with taxpayersâ?? money, and a financial crisis.â?�

Hold up...:smokebong:

Fan and Fred failed due to unethical, and unprofessional lending practices that really have very little to do with them. One could say they fed the housing bubble, but they were doing business like they always did, only in much higher volume. Could a better practice of risk management been implemented? Possibly, but that is not the underwriter's job to evaluate potential homeowners, that is the issuing banks department. Underwriters evaluate writers (lending banks), when things got bad i guarantee money began to flow at a slower rate. The Federal Reserve then lowered interest rates in an attempt to push lending, which was a horrible idea.

The truth of the matter is, Fan and Fred should not have been allowed to grow to a "to big to fail" size. Whatever happened to antitrust laws? Whatever happened to competition? You are now expected to believe Washington has your back, when the one thing they could have done to prove it gets mulled down due to political pandering....

[maladroit]

who allowed and encouraged fannie and freddie to grow too big to fail?



president bush october 2002, talking about his plan to create 5.5 million homeowners among minority groups, using government sponsored enterprises, fannie mae and freddie mac
YouTube - economic crisis president bush mortgage speech


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Bush Administration Convenes Summit to Expand Minority Homeownership

White House conference on minority homeownership brings public and private sectors together

RISMEDIA, Oct. 15, 2002

President Bush today hosted a White House conference in
Washington, bringing together hundreds of public and private sector housing-related experts in a comprehensive partnership to close the nationâ??s â??homeownership gap.â?� This gap shows minority families continue to own homes at significantly lower rates than the rest of the nation.

In his State of the Union address last January, President Bush pledged to help more families, especially minority families, to become home owners. In June, President Bush issued the â??Homeownership Challengeâ?� to increase minority homeownership by 5.5 million by the end of the decade.

â??President Bush understands that when we open the doors of the American Dream to more families, we all win,â?� said Housing and Urban Development Secretary Mel Martinez. â??Homeownership inspires civic responsibility, offers children a stable living environment and generates economic benefits for families and communities.â?�

The White House Conference on Minority Homeownership featured solutions to the obstacles minority families face as they pursue the â??American Dreamâ?� as well as the considerable social and economic benefits of expanding homeownership opportunities to would-be first time homeowners.

During the conference, Martinez released a report entitled Economic Benefits of Increasing Minority Homeownership?this report concludes that adding 5.5 million minority home owners will stimulate an additional $256 billion in benefits to the housing sector of the U.S. economy.

Numerous private and nonprofit organizations joined the Administration in forming The Blueprint for the American Dream Partnership, a collaborative effort to advance the Presidentâ??s goal. This partnership developed a strategy that identifies four areas that must be addressed in order to meet the Presidentâ??s goal including:

* Educating more people in the home buying process;

* Increasing the supply of affordable homes;

* Providing more downpayment and closing cost assistance; and,

* Offering more home financing options for lower income Americans.

The Blueprint for the American Dream outlines each organizationâ??s plan to help meet the Administrationâ??s challenge.

HUD, the Department of Agriculture, the Department of the Treasury, Federal Trade Commission (FTC), Federal Deposit Insurance Corporation (FDIC), National Credit Union Administration (NCUA) and the Federal Housing Finance Board (FHFB) represented the Bush Administration. The following private and nonprofit organizations also make up the Blueprint for the American Dream Partnership:

The Enterprise Foundation

Fannie Mae

Federal Home Loan Banks

Freddie Mac

Habitat for Humanity International

Local Initiatives Support Corporation

Mortgage Bankers Association of America

National Association of Hispanic Real Estate Professionals

National Association of Home Builders

National Association of Mortgage Brokers

National Association of Real Estate Brokers

National Association of Realtors

Neighborhood Housing Services of America

Neighborhood Reinvestment Corporation

Sears, Roebuck and Co.

To read Economic Benefits of Increasing Minority Homeownership or Blueprint for the American Dream visit Homes and Communities - U.S. Department of Housing and Urban Development (HUD)