Reports: Fannie Mae, Freddie Mac takeover set

Well, for all the ones who voted for bush, that will teach you a lesson!! i never voted for him, because i saw a disaster coming and i am baffled that so many got duped by the republican party and Fox news. just looking at the guy I knew how of a complete failure he would be.

so, next time, people, think!! and vote smart!! But again, when the democrats take over and start raising taxes you will be the first ones to blame them for debts they are not responsible for. well, nothing is free and debts have to be paid back!! and the tax payer are the ones who have to pay back for the disaster that a few have caused.

Hmm, the Demo's have had it for the last 2 years. Give the Demo's 4 more years and we will all be riding horses to work. Giddy Up!!!

Mark Kennedy....IF IT NEVER HAPPENED THERE WOULD BE NO SURGE. McCain's argues that he had the judgment to support sending additional combat troops to Iraq to quell the rise in extremist violence. Fine, the surge was successful and exceeded the expectations of many, however, if our intelligence community spent more time collecting reliable data on Iraq's WMD situation and Saddam's ties to Al'qaeda, we never would have invaded a sovereign country based on lies and conjecture.

What do you think about that?

What the hell does George Bush have to do with public companies making stupid loans to stupid people. This whole mess is completely and totally the fault of greedy foolish lenders who prayed on the greed and overconfidence of foolish consumers to sell them loans that no thinking person would think they could afford.

This government bail out is the dumbest thing they could do. The taxpayer did not profit when they were making money and we sure as hell should not pay when they are in trouble. Both lenders and borrowers must learn to live and lend within the means of the consumer. They are all learning a very expensive lesson but they must be allowed to learn it.

The Government running this program will only make things worse. You watch; If the Government is running the mortgage industry, the only people able to get loans will be illegal aliens.

Because they CHOSE to take a risk and it is now failing.. the Govt is bailing them out.. Are they going to pay my credit card debt when I cant pay it?? Why do they get the bail out.. let them fail... Now theres more taxpayer dollars going to someone else except the people paying 4 dollars a gallon on fuel... or 4 dollars a gallon on milk, 2 dollars for a damn loaf of bread..They will protect their big business but not the people of the country.. both the Dems and Reps suck!! We need to get someone else in office who makes about 50K a year and remembers why they got into the damn job in the first place! Absolutely disgusting what this country has gotten to. Greed, greed, and more greed. And they will sit there and have the gaul to point the fingers at each other.. Take a good look in the mirror! These people need to be held accountable.. Bottom line!

Proud Liberal- Why do you put everything in bold? Also, I am not saying I like Bush but how can you say

just looking at the guy I knew how of a complete failure he would be.

That is not very rational and makes me question any of your further views.

Hi, Robert! I agree with:

Because they CHOSE to take a risk and it is now failing.. the Govt is bailing them out.. Are they going to pay my credit card debt when I cant pay it?? Why do they get the bail out.. let them fail...

Completely. It sucks that when the "average Joe" makes a mistake, he has to pay it back. But big corps, they just get a free pass like its monopoly money. You and I, we actually have to be held accountable for our endeavours. It should be the same for everyone.

this is bull crap. The government should not be using tax dollars to bail out any business. They should let the fail. When they gave them money before they first paid there CEO that run them into the ground big buck in bonus.

The Dem and Rep in the congress and house are a pack of liar and scum bags and if we leave them in office we ask for more of the same.

We are a people have taxation with out representation. They had a tea party for this once before in the country and I think it may be tea time again. Yes we elected them but the take care of special interest groups and big business and there pockets they sold out the working class years ago and yes it is both parties not one or the other.

Vote out the incumbent

wilfred of ivanhoe,

you sound like the banks are poor little troubled companies that gave these people loans without any way of denying the loan...thats a load of crap! it's because of these banks that we're in this mess. they saw easy money and felt there is no risk. and now we as tax payers are the ones paying for the bailing out of these companies. The government feels more for these banks and companies than for the regular people these banks preyed upon in the first place, I live in MN and most homes here start at 200 plus thousand dollars and that's since the economy went south so if a person wanted a home they had to fork out alot of money even if they couldn't afford it. I don't blame these people I blame these banks that told these people they could afford it which was a lie.

nicely said abot the foxes guarding the hen house

It was the Congress that eliminated the honest appraisers and deregulated the federally insured banking industry in the 1980's at the bequest of the Realtor and mortgage lenders PAC's.

Freddie and Fannie helped to eliminate the honest appraisers so to artificially inflate the home price for higher profit, The Office of Thrift Supervision knew it, FHA/HUD had a HUGE hand in it. Mortgage Guaranty Insurance Corp. knew it.

In the late 1980's the House Government Operation Committee said: "If sound valuation practices are not followed, HUD"S risks are increased." Yet they continued deregulating. Why? Because instead of being punished, everyone gets bonuses.

I was put out of business because I tried to protect the public from exactly what is happening now, I have spent the last 20 years trying to get the MEDIA and Congress to address this issue.

I cannot print a web site but go to appraiserspetition .com.

How can a problem that was blamed for over 1/2 of the LAST taxpayer bailout of these crooks STILL be a problem today? Your Congress and the MEDIA.

This is a letter I received when trying to get help as an appraiser in Texas.
Our Congress not only knew this second bubble would bust they created the whole thing.

Forgive my simplistic view, but if a mortgage has adequate collateral there would be very little to no loss to all, so why did Congress eliminate the honest appraisers that refused to succumb to the pressures to hit the "right numbers" in the 1980's after the last bailout?

HENRY B GONZALEZ, TEXAS. CHAIRMAN
BRUCE F VENTO. MINNESOTA CHARLES E SCHUMER. NEW YORK KWEISI MFUME, MARYLAND JOHN J. UFALCE. NEW YORK MAXINE WATERS. CALIFORNIA HERBERT C. KLEIN. NEW JERSEY CAROLYN B. MALONEY.NEW YORK PETER DEUTSCH, FLORIDA LUIS V. GUTIERREZ. ILLINOIS BOBBY L RUSH, ILLINOIS LUCILLE ROYBAbALLARD. CALIFORNIA THOMAS M. BARRETT. WISCONSIN ELIZABETH FURiiE. OREGON NYOIA M VELAZQUEZ, NEW YORK ALBERT RUSSELL WYNN. MARYLAND CLEO FIELDS. LOUISIANA MELVIN L WATT NORTH CAROLINA U.S. HOUSE OF REPRESENTATIVES
SUBCOMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
OF THE COMMITTEE ON BANKING, FINANCE AND URBAN AFFAIRS
ONE HUNDRED THIRD CONGRESS B303 RAYBURN HOUSE OFFICE BUILDING WASHINGTON, DC 20515-6052 MARGE ROUKEMA. NEW JERSEY DOUG BEREUTER. NEBRASKA THOMAS J. RIDGE. PENNSYLVANIA RICHARD H. BAKER. LOUISIANA CRAIG THOMAS. WYOMING JOE KNOLLENBERO. MICHIGAN RICK LAZIO. NEW YORK . ROD GRAMS, MINNESOTA SPENCER T. BACKUS III. ALABAMA MICHAEL N. CASTLE. DELAWARE DEBORAH PRYCE. OHIO TOBY ROTH. WISCONSIN
BERNARD SANDERS. VERMONT (202) 225-7054
May 18, 1994
Mr. Steve G
4820 Westgrove #2205
Dallas, Texas 75248

Dear Mr. G:
I am writing in response to the recent letter regarding your unfortunate experiences as an appraiser in the past few years. First of all, I commend your meritorious honesty as a certified appraiser in the state of Texas. I sympathize with you and find it a shame that the fiduciary relationship you attempted to maintain with your employers went unnoticed and unrewarded.
Unfortunately, the Congress cannot legislate honesty throughout the banking and appraisal industry. I am confident that there are many respectable banks and mortgage companies who are in great need of an appraiser with your integrity. Rest assured that I always fight to uphold the FHA guidelines and I will continue to maintain the most effective way to protect borrowers and deter unfair lending practices.
Thank you for contacting me personally on this matter.
With every best wish I remain,
Henry B. Gonzalez, Chairman
---------------------------
Of course they couldn't regulate HONESTY in the industry, the PAC's and lobbyist's were paying them to de-regulate it. Again, how can something that was declared; "a serious national problem costing taxpayers billions..." by a Congressional subcommittee in 1987 still be a problem TODAY?

One real simple question:
How does one:
"maintain the most effective way to protect borrowers and deter unfair lending practices. "
If one cannot regulate HONESTY in the banking and appraisal industries?

Why (sorry, I lied about one question) when a Congressional subcommittee, chaired by Con. Doug Barnard, Jr, said:

"...that it is extreme pressures on appraisers from real estate lenders and borrowers that MOST often cause bad appraisals."

"Alarming numbers of lending institution officials regard appraisals as an obstacle to be overcome or a rubberstamp..."

"While appraiser ineptitude is occasionally responsible for inadequate appraisals, MOST abusive practices result from explicit or implicit threats against appraisers, by real estate lenders and borrowers, that their services will be discontinued if they fail to provide the "right" numbers."

did FHA/HUD enact the direct endorsement program allowing lenders to hire in-house staff appraisers, in 1985?

They just took an independent entity and made him an employee of someone who viewed him as an "obstacle to be overcome"

If the lenders had such a strong adverse effect on appraisers when they were independent contractors, what are they going to do now that the CONGRESS made them salaried employee's?

Again go to the petition, HOW is this STILL a problem TODAY.

YOUR Congress and a media owned by big business.

For if all mortgaged home loans had ADEQUATE collateral and not backed by an artificial market this wouldn't / COULDN'T happen, That's the whole point in having an independent appraisal. To make sure the bank, the borrower, the secondary markets and MOST important the TAXPAYER is protected from unnecessary losses.

IF IT IS FEDERALLY SUBSIDIZED AND INSURED IT SHOULD BE FEDERALLY REGULATED.

Mrmustard: First let me say that I don't like Bush or his administration's economic policy. However, before you pro-fer your opinion please do some investigation. The problems we are seeing today are not new; these problems are not a result of the ineptness of the Bush administration - it has only added to it. The problems have been around for a very long time both under Republican AND Democratic administrations. Sorry, but you and 99.9% of the the American populace have absolutely no idea what really goes on. Few Americans know little about economics (especially if you studied it in our American universities); little about history (especially if your knowledge is limited to our educational system); and practically nothing at all about economic history. You're entitled to your opinion because of the US Constitution, per se; however, if you really want to be enlightened about these matters, first study the Constitution. You'll find that most of what our Government does today is far beyond the powers allotted to it by the Constitution. Every branch of the US Government has usurped authority,which was never grated to it. Always start at the beginning, which means going back to a time before the American Revolution. If you conduct really in depth research you will find all kinds of surprises - most very unpleasant.

So what the hell is your point silky-333133. All I saw was blabber. No evidence or investigation on why he is wrong.

Again, I wonder who went on vacation while the other party worked??? Who went out on luxury cruises while America paid huge prices at the pump, lost homes, lost jobs??? The Demo's.

((((buzz)))) YOU"RE SO wrong or sorely misled hey hey now. I have personally watched many Republicans and their lobbyist enjoy fabulous excursions and relish on the taxpayers money to support their wild rides with bimbos and drink. I grew up in an orthodox Republican household and was entertained by the illustrous fun and frolick stories and pix committed by not only one relative but two that worked for and during the Reagan era. One of the good ole boys asked me to go along for the ride to some island I've never heard of at the young age of 19. He said he would gaurantee a good time...ugh. I was disgusted and put off of this party for the rest of my voting life.
I couldn't wait for the day when I would be able to leave the clutches of a staunch Republican household with their horny old toads and big business/bureacratic bull. I prefer a leadership based upon cleaning up the debt, foreign affairs, our economy and environment.

BEV_OKC_CITIZEN - Sure. Did you say you worked for Kos or the National Enquirer. Such I personally watched (saw, met, witnessed, experienced, etc) testimonials mean very little when they make ranting accusations. I personally saw a pig fly.

People I consider myself an independent liberal, but the mortgage mess is the Dem.'s fault, this is one of their pet peeves, believe I know, I was a real estate appraiser in Texas in the 1980's and it was Ron Reagan and the Dem. Congress that de-regulated the mortgage industry and even as the largest taxpayer bailout in history was going on, the Dem. Congress continued de-regulating, however, I guess with the Rep.'s in charge of EVERYTHING the past 8 years, they should of been able to step in long before it got this bad.

But it was the Dem.'s that eliminated the honest real estate appraisers in the '80's allowing for 20 years of artificially inflated real estate prices.

For no matter how one wants to look at it, IF a mortgage loan is supported and backed with adequate collateral THERE IS NO LOSS.

So when the honest appraisers reported abuse in the system, "they" de-regulated further and took the independent appraiser and made him a salaried employee of the mortgage lenders, you did what you were told or were fired.

IT IS BOTH PARTIES, quit blaming one or the other and unite and let them know they work for US not the lobbyist.

I know pie in the sky

Oh by the way the CEO's of both Fanny and Freddie both received over $14.5 MILLION bonuses this year.

Great job guys

Think we'll get our money back? Who's the fool and who has the last laugh?

I call Bush and his undercover immoral money mungers all scam artists.

They must feel real proud of screwing the hard working, unknowing laborers out of their homes and incomes.

Bush is a bushwacker, as far as I and many others are concerned.

Forget blaming Bush....It's the incumbents...period

Ah yes, its all Bush's fault. I remember how great everything was before the devil took office. Every one had a job. Mexicans lived only in Mexico. Every one was allowed to carry a gun but no one did. The bills were always paid on time. With lot of money left over!!.....UM?... NOT!
Hey pal, are you related to Archie Bunker? If all your going to do is show how short sighted, closed minded, thought limited YOU REALLY ARE, then do us all a favor and shut up.
Bush never worked a day at Fannie May. Yet they are failing. AT NO fault of the government.
This nation is falling apart from the inside. Not because of the government. But because of the out right greed of private industry. There are ZERO morals in day to day practices of American industry. Their god is the dollar. They will do anything they can to get it. Their motto is "Greed is Good". This mind set has been going on for years. I recall this self damming behavior happening in the early 70's. Long before idiot boy became president. And as long as people like yourself keep allowing your hatred and rantings to confuse the facts the true enemy of our country, our society, and our Lord Jesus Christ will remain cloaked and be allowed to continue decimating us.

You say "AT NO fault of the government"- Read up on Phil Gramm, please.

Not much of our businesses today are working solely within America these days.

I was so shocked to find out that INDIA now houses every single person's financial records (tax forms, health ins. paperwork, social security information, etc.) in a paid archive by organizations and institutions.

Like I really trust my personal info and data in the hands of another country! Did anyone ask me if I cared if my personal information was going to be shipped overseas in a country I'm not so sure will turn on us in the future; like so many others.

Look at China...it looks to me as if they are aiming at our youth and playing on our ignorance in sending over hazardous and sub standard products and here we are paying them to do just that. I cannot for the life of me figure out how or why we ever let our country outsource as much as we have and end up depending on foriegn product to ruin our economy and threaten the lives of Americans.
My grandfather once said back in the 70's that this world is going to hell in a hand basket and now I know what he meant.
I say hurry up NASA and build me a ride i can take to another planet, unscathed and untouched by money hungry opportunists.

You have to credit the "I am entitled to my entire life being paid for by taxpayers because I am" mentality that some folks in the "system" have for some of this economic crunch. I'm not saying there aren't hard-working folks out there, but not everyone has the means to purchase a home, and not everyone who has the means to buy a reasonably priced home has the means to cover a mortgage twice as high...My family was approved for a loan twice as high as what we felt we could afford. Did we say "oh goodie we'll just go for the bigger/better house because they'll *give* it to us"?? NO WAY! We bought what we could afford. We don't like it much, but we're not stressing over paying the mortgage. Now, for our forethought and careful planning...we'll not be able to purchase a home in the future as we were planning for, because home mortgages will soon be a thing of the past. Thanks bunches, greed reigns again.

Sorry...you don't know what the hell you're talking about! Let me say first that I am neither a Republican or a Democrat. Does that make me an Independent - not necessarily. I would ask though that you check the machinations of Barney Frank and Chris Dodd; both Democrats. These two "beltway" politicians have received substantial financial support from the banking lobby. You see, this isn't about party politics; it's about career politicians. You see, this Country was founded upon a new concept - citizen legislators; not entrenched bureaucrats. As Thomas Jefferson stated - citizens should revolt against their government every 20 or 30 years to keep it honest. I suspect the majority of you, by your comments are relatively young (younger than 40). If you're older and still make these silly ass comments - shame on you. More than 80% of incumbents in national electionjs are relected. If you really want to do something to CHANGE things vote out every imcumbent this fall. Party affiliation be damned!

Certainly there were some people who got a bigger house than they should have. And there were some who thought they could be able to afford the current house payment based on tomorrows raise and tomorrows appreciation.

However, there were also many loan brokers who knowingly approved the above loans. And there were loan brokers who sold loans to customers who did not understand exactly what they were getting into. And there were loan brokers who knowingly mislead new homeowners about loan terms. And there were loan brokers who assured buyers that another loan, at a fixed rate, could be obtained in a year or two.

The bottom line is that regulation is put in place to not only protect the consumer from their own ignorance, but also to protect the consumer from unscrupulous businesses. AND WHAT IS WRONG WITH THAT???

Congratulations to those who purchase homes without stretching themselves too thin. I am in that crowd. But we all end up paying a share when businesses and consumers are left to their own devices. Regulations help us all.

I know that there are lots of people, or used to be, that work multiple jobs to make ends meet, feed their families, and try to get to the American Dream of having their own house. I love 'em, and God loves 'em, too. Think of the hard working immigrants (let's not get into the legal/illegal issues for now) who live in crowded apartments, share beds, and bust their buts with honorable work. But many of these lending companies used the American Dream to scam them.

On the other side, financial education is not taught in schools in this country, which leaves people vulnerable since they don't get the basic education and skills to handle their finances properly. I don't even get the impression that people know the Alsop's Fable about the Grasshopper and the Ants, which teaches valuable lessons. Then there is the old but true adage "If it looks too good to be true, it probably is."

I think that everybody should have a year long class on personal financial management and investing. What is costs to live in an apartment or buy a car. How to budget. How to save, etc. What are investments and investment risk? What does it take to start and run a business? Probably at the high school level.

But we are living in a country with politicians and special interest groups that are against even simpler and important things like comprehensive sex education. Conservative seem to think that if sex is taught in a classroom that there is an implied "hands on lab." I've had the pleasure of knowing good Republican girls and Good Catholic girls, and most of them were "very good" without the benefit of sex education. But I'm sort of off subject.

Thank you Ken Pac!
You scripted in your statement, "...we have an obligation to educate and to use our resource base to help people understand how to purchase a home and what -- where the good opportunities might exist for home purchasing."
There is not enough financial institutions or conglomerites taking ownership and responsibility in educating those that are less educated in this particular field of study. The fine print and undefined language in contracts is unbelievably cumbersome and mind boggling to say the least and these agents pushing the paperwork know that. Many take advantage of the fact and tell buyers not to worry. I've heard it happening and I too played into trusting them, they were convincing and I trusted them. I did not get screwed by taking on a flex or variable mortgage..THANK GOD...but too many have and that is so sad.

I work for a financial institution that prides itself on educating the customer and truly is concerned for each customer and that is a very rare commodity today. My organization has been in business and solvent for close to 200 years and I am proud to be associated with a highly respectable organization that continually puts its consumers first.

I'm a happy and content employee and respected by many of my competitors. All organizations should try our tactics...I sleep well at night and they could too.

Amen.

Amen Steven...I think we all forgot about the student loan industry.

Man, don't you wish you had the contacts and backing to build a Federally protected organization that helps you make a catrillion dollars and money you don't have to pay back if you go belly up. You can't buy protection like that on the streets.

Ahhhh...the scavenging of unsuspecting American taxpayers. Gotta love their ingeniuty.

It will be the new great depression--only this time our government will not be able to print money to help anybody. Money will not help you as it will be like play money.

It's really scary actually. The truth is that we're owned by other countries so we don't have any assets. The lesson being taught here is "go ahead and risk everything, you won't have to take the fall." Sad. Our country. Sad.

Hey The government does not print money. Who do you think owns the federal reserve, it's privately owned. Chase Manhattan owns 9 of them, our government borrows from them and they charge us real high interest rates. Read up on how our money system works. Your federal taxes just pay the intrest on thses loans.

Paying the price by allowing freddie and fannie fail would force a financial collapse that would make the great depression look like a marshmellow roast (by comparison). Those involved surely broke some laws and need to be held accountable.
This mess is going to cost a lot! Get prepared and I hope that we don't end up being owned by other countries loaning us money and foreclosing on that debt. We have few "friends" left in the world.

They fail, somebody else buys their assets, the big investors get hurt or they get bailed out, the government is on the hook for their debts, the little guys get hurt. See a pattern here. The system will not fail if FannieMae and FreddieMac go under. Just the owners of FannieMae and FreddieMac.

It is NOT about partisan politics!!! We are ALL to blame; really the Repbulicrats and Democians are much the same, same, same, same. Both "major" parties are absolutely CLUELESS as to the Constitution and Founding Fathers' ideals. They were, sadly, lost many years ago to a party system that was doomed to failure. Altering the two-party system is one of the biggest first steps to recovery. Unfortunately, I don't see that happening. People have lost their will to fight and think for themselves. Government and regulations have spoon-fed them until they're more obese mentally than physically. I personally feel that the Democigans are worse at dictation life choices, but the Republicrats have had good shots at such ideas as well. Try Libertarian ideals; much closer to the Founding Fathers and a way to get our country, however slowly, out of debt.

Ah, because the F989089- ing war costs so much money, when property rates went through the roof, your local tax collector went nuts telling the city council how rich THEY were. When the bottom fell out, your city is NOW BROKE. Before that, your city didn't give a darn about the little guy. They do now, don't they?

bush is going to bail them out like a stupid dog. let them drown. tie a rock to their feet.

Bush???? Can't do it alone.

Bush can't do it period and has proven so. His 8 years of printing the mighty dollar to make up for a budget riddled with war debt and turning a blind eye to all the federal upheavel that has been going on, letting the American people down when in need (LA and such) is all I can take and I cannot take anymore.

As a concerned and vocal taxpayer and American citizen that cares, I'm going to hold Obama up to his commitments by writing and blogging every week & demanding my Congressmen/women work for me. I will attend, as usual, every issue that sees its way to the table of my town's representatives and stand up for what is right & true.

What are you going to do to stay on top of the issues and political playing field?

Oh boy, Mike. I think you just burdened yourself in showing just how much you do not know about the issues or what's been going on, especially in knowing who the commander and cheif is that should be held accountable.

Bush and Cheney have had and always will have a special interest in the oil industry and the oil industry will hold them close to their hearts for helping them make a notorious fortune. They are all set for life. They won. They, the feds, didn't react when they should have and that has to make you wonder, doesn't it?

I choose to be in the know before debating issues. It seems to work well for me.

ha ha. Good one. I get it.

yea, let's deregulate a some more things- less government- that is really good. Let's let the corporations run this country.

"good job browny"

seriously, it is the fault of both parties. It is shameful that this has happened and even more shameful that MOST AMERICANS will not even NOTICE.

HRDawg...can I ask where you're living, cuz it certainly doesn't sound like you're experiencing what most of us are experiencing and I want to go there.

Maybe you are amongst a group, earning more than enough money to live, and don't have many responsibilities that drain you of a meager income. Not everyone is well off and the nations financial status is looking pretty bleak from my lens.

God has certainly blessed you if you're not feeling the pain.

AMEN

It's a new world order if you ask me. Someone please publish the archived journals of the NWO and then we can all talk a true talk.

There is a bigger plan that has and will always dictate to a higher order and no one is daring enough or willing to bring it to light.
The information is all out there for anyone and everyone to read, but we choose to not believe or hear anything more than what we can bear. It's too scary, yes...but it is something we should all be wary of.
Hidden agendas are going on right under our noses and we are so oblivious.