While is has been fashionable to “Blame Bush” for every malady and problem of the past eight years, no amount of media piling on will ever be able cover the real facts surrounding the mortgage crisis. Technology has sealed the words of the real players in time through the archives of the new media. The Internet is full of information and facts from senate and congressional hearings as well as interviews. YouTube is loaded with visual recordings of hard-line politicians threatening anyone who would dare expose or stop their efforts to buy the vote of people, especially minorities. It’s hard to believe that the mortgage crisis really began so long ago. The most significant changes came about the great reign of the Clinton machine.

 

In October 1992, 15 years before the housing meltdown and sub prime mortgage crisis, Rep. Jim Leach of Iowa was on the floor of the House, warning of the potential danger that Fannie Mae and Freddie Mac posed to the economy. The Washington Post reported that Jim Leach warned that Fannie and Freddie were changing “from being agencies of the public at large to money machines for the stockholding few.”  Democrats including Rep. Barney Frank in the House and Sen. Chris Dodd in the Senate, Congress openly defied anyone to challenge their assertions that everything was running fine at Fannie and Freddie, they instead doubled Fannie Mae and Freddie Mac’s risks. The liberal Democrat-led Congress reduced capital limits on the two mortgage lending giants, letting them use enormous leverage to 2.5% of assets at Fannie and Freddie, vs. 10% for banks to expand lending to low-income, minority communities. Things began OK, there were actually a couple of things that actually helped the minorities on being requiring validation for lenders rejections. The revisions also brought out greater RESPA oversight of such crimes against society as title companies paying for Realtor open houses and giving gifts of appreciation to anyone in real estate.

 

Way back in In April 2001the Bush administration’s budget stated that the size of Fannie Mae and Freddie Mac is “a potential problem,” because “financial trouble of a large government-sponsored enterprise GSE could cause strong repercussions in financial markets, affecting Federally insured entities and economic activity.”

In May of 2002 President Bush called for the disclosure and corporate governance principles contained in his 10-point plan for corporate responsibility to apply to Fannie Mae and Freddie Mac.  (OMB Prompt Letter to OFHEO, 5/29/02)

In February 2003  the Office of Federal Housing Enterprise Oversight (OFHEO) released a report explaining that “although investors perceive an implicit Federal guarantee of government-sponsored enterprise, GSE obligations, In September of the same year Fannie Mae discloses SEC investigation and acknowledges OFHEO’s review found earnings manipulations. In October Fannie Mae disclosed a $1.2 billion accounting error.

In 2004 President Bush’s annual Budget again highlighted the risk posed by the explosive growth of the government-sponsored enterprise’s and their low levels of required capital, and called for creation of a new, world-class regulator:  “The Administration has determined that the safety and soundness regulators of the housing GSEslacksufficient power and stature to meet their responsibilities, and therefore should be replaced with a new strengthened regulator.” a new first class regulatory supervisor for the three housing GSEs:  Fannie Mae, Freddie Mac, and the Federal Home Loan Banking System.”  (Samuel Bodman, House Financial Services Subcommittee on Oversight and Investigations Testimony, 6/16/04)  (2005 Budget Analytic Perspectives, pg. 83)

In April 2005 Treasury Secretary John Snow repeats his call for GSE reform indicating the need for real GSE reform to ensure that our housing finance system remains a strong and vibrant source of funding for expanding home ownership opportunities in America… Half-measures will only exacerbate the risks to our financial system.”  (Secretary John W. Snow, “Testimony Before The U.S. House Financial Services Committee,” 4/13/05)

 May 25, 2006, on behalf of the Federal Housing Enterprise Regulatory Reform Act of 2005 (via Beltway Snark)  John McCain  predicted the collapse of Fannie Mae and Freddie Mac, along with Bear Stearns and AIG.  He criticized the falsification of financial records to benefit executives, including Franklin Raines and Jim Johnson, both of whom work as advisers for the Obama campaign! McCain also noted the power of the  Democrats lobbying efforts to prevent ANY oversight of their business practices. 

July 2007, Two Bear Stearns hedge funds invested in mortgage securities collapse. President Bush emphatically calls on Congress to pass a reform package for Fannie Mae and Freddie Mac.  Congress needs to get them reformed, get them streamlined, get them focused, and then I will consider other options.”  (President George W. Bush, Press Conference, The White House, 8/9/07)

December 2007, President Bush AGAIN warns Congress of the need to pass legislation reforming GSEs saying “These institutions provide liquidity in the mortgage market that benefits millions of homeowners, and it is vital they operate safely and operate soundly. He called on Congress to pass legislation that would strengthen independent regulation of government-sponsored enterprises.  The GSE reform bill passed by the House earlier this year was a start.  But the liberal led Senate never acted.  (President George W. Bush, Discusses Housing, The White House, 12/6/07)

February 2008,  Assistant Secretary David Nason again reiterates the desperate need to reform saying “A new regulatory structure for the housing GSEs is essential if these entities are to continue to perform their public mission successfully.”  (David Nason, Testimony On Reforming GSE Regulation, Senate Committee On Banking, Housing And Urban Affairs, 2/7/08)

March 2008,  President Bush called on Congress to take action and “move forward with reforms on Fannie Mae and Freddie Mac. You  need to continue to modernize the FHA, as well as allow State housing agencies to issue tax-free bonds to homeowners to refinance their mortgages.”  (President George W. Bush, Remarks To The Economic Club Of New York, New York, NY, 3/14/08)

April 2008,  President Bush urges Congress to pass the much needed legislation and “modernize Fannie Mae and Freddie Mac. Congress must do what will encourage the housing market to correct quickly by … helping people stay in their homes.”  (President George W. Bush, Meeting With Cabinet, the White House, 4/14/08)

May 2008,  President Bush issues several pleas to Congress to pass legislation reforming Fannie Mae and Freddie Mac before the situation deteriorates further.  “Americans are concerned about making their mortgage payments and keeping their homes.”  Yet Congress has failed to pass legislation  He repeatedly requested to modernize the Federal Housing Administration that will help more families stay in their homes, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance sub-prime loans.”   (President George W. Bush, Radio Address, 5/3/08) “[T]he government ought to be helping creditworthy people stay in their homes. And one way we can do that. Reform will come with a strong, independent regulator.”  (President George W. Bush, Meeting With The Secretary Of The Treasury, the White House, 5/19/08)” Congress needs to pass legislation to modernize the Federal Housing Administration, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance subprime loans.”  (President George W. Bush, Radio Address, 5/31/08)

June 2008, As foreclosure rates continued to rise in the first quarter, the President once again asks Congress to take the necessary measures to address this challenge, saying “we need to pass legislation to reform Fannie Mae and Freddie Mac.”  (President George W. Bush, Remarks At Swearing In Ceremony For Secretary Of Housing And Urban Development, Washington, D.C., 6/6/08)

Finally in July 2008 President Bush publicly called for GSE  (government-sponsored enterprise) reform 17 times before Congress acted!  Unfortunately, these warnings went unheeded, as the President’s repeated attempts to reform the supervision of these entities were thwarted by the liberal legislative maneuvering of those who emphatically denied there were problems.

Finally after 17 separate efforts to correct the grave errors of the financial markets Congress heeds the President’s call for action and passes reform of Fannie Mae and Freddie Mac as it becomes clear that the institutions are failing. TOO LITTLE TOO LATE!!!!!!

The liberals have the audacity to blame the financial crisis on President Bush?  And the most liberal junior congressman, who by the way is the second largest recipient of campaign funds from Freddie Mac and Fannie Mae see:  http://www.opensecrets.org/news/2008/09/update-fannie-mae-and-freddie.html.  Obama is shouting that John McCain doesn’t get it? This proof positive Obama nor his handelers know what they talking about…or worse, they do know and they really don’t care about you and I but only want to control.

The saddest reality is that so many people bought into the scam and now millions of American families from Tampa Florida to Seattle Washington are facing the loss of their homes, their cars, their American dream all because of a lack of true understanding of market driven society. The end result is that there is a massive wedge of distrust between races and economic classes.  The Tampa bay area  where I base my real estate business, communities of Brandon, Valrico, Riverview, Seffner, Apollo Beach, Tampa, Carollwood, New Tampa, Wesley Chapel are all feeling the effects of these bad decisions.

We all have a huge decision to make when we vote.  Do you want to vote the most liberal (socialist) short term congressman in to the most powerful political office in the world? The other option is a person who is known for standing up against anyone no matter what party, for the things he believes in……whether I agree with him or not. The main stream media’s attempt to hide the facts from you should tell you a little bit about thier motives. May God be merciful upon us and give us what we need instead of what we deserve.