Mortgage Crisis Didn’t Happen Overnight

December 22, 2008

From the New York Times in 1999:

Fannie Mae, the nation’s biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.

In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers.

I think the problem actually goes back to the ’80s and the Reagan Administration, but have never seen any old articles referencing that.

1 Comment

  • Reply Juice from HGP December 25, 2008 at 1:30 am

    1 – Merry Christmas, McGees, one and all!

    2- Mortgage crisis: I believe it goes back to… you guessed it– James Earl Carter and the 1977 CRA or Comm. Reinvestment Act. Actually, it goes back to Ung the Caveman, who first translated that little voice in the back of his head: “Must have bigger cave to attract strong woman; must have faster dino-car to get woman with no head lice; must kill biggest ox so chief’s youngest daughter will consent to be my footstool….”

    3- Ever use the Flock browser? Netscape sends you there since NS is now defunct. I think Firefox built it?

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