Reply #57: Facts

[bikoman]

Fact: Fannie Mae and the Federal Home Loan Mortgage Corporation (Freddie Mac) own or guarantee about half of the U.S.'s $12 trillion mortgage market.

Fact: Fanny Mae and Freddy Mac gave loan guarantees to Countrywide and other lenders to provide low-income housing in impoverished areas which historically vote democrat.

Fact: Fanny Mae CEO Frank Rains pay was based on profits - he was paid over $90M while CEO.

Fact: Fanny Mae and Freddy Mac were out of control providing easy money through questionable loan purchases and making guarantees on bad loans from Countrywide and Washington Mutual and other lenders without regard to risk. Since Fanny and Freddy were willing and able to buy these stinky loans it enabled and encouraged the mortgage industry to take more risk and sell more and more creative loan packages to uneducated borrowers and speculators.

Fact: Bush and Republicans introduce bill in 2003 to reign in Fannie Mae and Freddie Mac and mandate federal governence and oversight.

Fact: This bill was opposed by Barney Frank, Chris Dodd and other democrats who feared a reduction in low-income housing loans to their constituency. From the NY Times article:

''These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis,'' said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ''The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.''

Fact: The bill never got out of the Banking Committee as it was killed by the ranking member Chris Dodd in 2005.

Fact: Chris Dodd and Obama were #1 and #2 recipients of campaign contributions from Fannie and Freddy to the tune of 100’s of thousands.

Fact: Ex-CEO Frank Raines is now one of Obama’s economic advisors.