Comments on: The Feds Themselves Issued Subprime Loans in 2001 http://www.azmortgageguru.com/the-feds-themselves-issued-subprime-loans-in-2001/ Mon, 20 Jun 2011 00:09:25 +0000 hourly 1 http://wordpress.org/?v=3.2 By: Edoard Banaynal http://www.azmortgageguru.com/the-feds-themselves-issued-subprime-loans-in-2001/comment-page-1/#comment-2392 Edoard Banaynal Mon, 28 Jul 2008 18:59:14 +0000 http://www.azmortgageguru.com/?p=943#comment-2392 The FDIC is losing more money every day. In July 25, it took over First National Bank. A week before, it took Indymac. The U.S. Treasury bailed out Freddie Mac and Fannie Mae. Months ago, the feds, together with JPMorgan, bailed out Bear Stearns. People say the real estate crisis and present credit crunch started with the subprime collapse. Lenders were giving loans to people who have low credit ratings or don't have the capacity to pay at all. Lenders overvalued the mortgaged properties or the collateral just to close deals with people, some of them illegal aliens. Hence, the collapse of Aegis Mortgage, HomeBAnc, NewCentury, People's Choice. The ratings agencies gave high credit ratings to securities backed by these mortgage loans. tsk tsk. Who's to blame here? Now knowing that the Feds have issued subprime loans themselves, I think everyone is to blame here. The FDIC is losing more money every day. In July 25, it took over First National Bank. A week before, it took Indymac.

The U.S. Treasury bailed out Freddie Mac and Fannie Mae. Months ago, the feds, together with JPMorgan, bailed out Bear Stearns.

People say the real estate crisis and present credit crunch started with the subprime collapse. Lenders were giving loans to people who have low credit ratings or don’t have the capacity to pay at all. Lenders overvalued the mortgaged properties or the collateral just to close deals with people, some of them illegal aliens. Hence, the collapse of Aegis Mortgage, HomeBAnc, NewCentury, People’s Choice.

The ratings agencies gave high credit ratings to securities backed by these mortgage loans.

tsk tsk.

Who’s to blame here? Now knowing that the Feds have issued subprime loans themselves, I think everyone is to blame here.

]]> By: Louise Strother http://www.azmortgageguru.com/the-feds-themselves-issued-subprime-loans-in-2001/comment-page-1/#comment-2379 Louise Strother Tue, 22 Jul 2008 17:54:43 +0000 http://www.azmortgageguru.com/?p=943#comment-2379 Indeed! Just goes to show that we need to look out for ourselves and not assume that the system will watch out for us. Sometimes the best intentions can go astray. -- Louise Indeed! Just goes to show that we need to look out for ourselves and not assume that the system will watch out for us. Sometimes the best intentions can go astray.

– Louise

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