What did India have to do with this? 😂 MDFer loves to rewrite history. CNBC, of all places!!! Oopsie!! 😂
The seeds of the mortgage meltdown were planted during Bill Clinton’s presidency.
Under Clinton’s Housing and Urban Development (HUD) secretary, Andrew Cuomo, Community Reinvestment Act regulators gave banks higher ratings for home loans made in “credit-deprived” areas. Banks were effectively rewarded for throwing out sound underwriting standards and writing loans to those who were at high risk of defaulting. If banks didn’t comply with these rules, regulators reined in their ability to expand lending and deposits.
These new HUD rules lowered down payments from the traditional 20 percent to 3 percent by 1995 and zero down-payments by 2000. What’s more, in the Clinton push to issue home loans to lower income borrowers,
Fannie Mae and
Freddie Mac made a common practice to virtually end credit documentation, low credit scores were disregarded, and income and job history was also thrown aside. The phrase “subprime” became commonplace. What an understatement.
Before Hillary rewrites history, let's look at how the Clintons contributed to the Great Recession, write Larry Kudlow and Stephen Moore.
www.cnbc.com
Lol, that’s some hardcore data there, CNBC is a joke