From the Wall Street Journal....
For years, immigrants to the U.S. have viewed buying a home as the ultimate benchmark of success. Between 2000 and 2007, as the Hispanic population increased, Hispanic homeownership grew even faster, increasing by 47%, to 6.1 million from 4.1 million, according to the U.S. Census Bureau. Over that same period, homeownership nationally grew by 8%. In 2005 alone, mortgages to Hispanics jumped by 29%, with expensive nonprime mortgages soaring 169%, according to the Federal Financial Institutions Examination Council.
Mortgage lending to Hispanics took off between 2004 and 2007, powered by nonprime loans. The biggest jump occurred in 2005. The 169% increase in nonprime mortgages to Hispanics that year outpaced a 122% gain for blacks, and a 110% increase for whites, according to a Journal analysis of mortgage-industry and federal-housing data. Nonprime mortgages carry high interest rates and are tailored to borrowers with low credit scores or few assets.
Between 2004 and 2007, black borrowers were offered nonprime loans at a slightly higher rate than Hispanics, but the overall number of Hispanic borrowers was much larger. From 2004 to 2005, total nonprime home loans to Hispanics more than tripled to $69 billion from $19 billion, and peaked in 2006 at $73 billion.
Also, for more on this crisis that has killed our economy see:
New York Times articles in 1999 and 2003 on the Economy
New York Times not telling you the whole story once again
Media is not giving you the whole Mortgage Crisis story: Fannie and Freddie is Enron x 19/Microsoft Sized Monopoly/Leading Compaign Giver and LobbyistThe Economy and what Big Media is not telling you...
Obama's connection with Fannie Mae and Freddie Mac ignored in Big Media. The Fact that Bush tried to reform Freddie and Fannie ignored in Big Media.
Mortgage Crisis
Orson Scott Card (Democrat who is also, highly critical of the free-market and capitalism) writes a powerful argument and telling piece!!! Must read!!
$4.6 of the $6.6 trillion mortgage-backed securities at the heart of the financial crisis are from Government Sponsored Enterprises!!!!
Dow has gained 1400 points since 11/21/2008 after dropping 2000 points from 11/4/2008 to 11/20/2008 inspite of recession and unemployment news...
New York Times refutes itself when blaming Bush for the economic crisis. Fannie and Freddie leveraged their government-sponsored advantages...
BBC News: "Fannie...and...Freddie is the biggest corporate rescue in history...leaving a grey area between being government owned and private sector"
Fannie and Freddie CEO's make it clear that Fannie and Freddie were not truely private sector companies....
The economy and the cause and how many know enough to justify their vote? Testimony of Brian Welch of Korn. Jill Stanek's blog moves into top 7000.
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Housing Push for Hispanics Spawns Wave of Foreclosures-"California Rep. Joe Baca has long pushed legislation he said would "open the doors to the American Dream" for first-time home buyers in his largely Hispanic district. For many of them, those doors have slammed shut, quickly and painfully.
Mortgage lenders flooded Mr. Baca's San Bernardino, Calif., district with loans that often didn't require down payments, solid credit ratings or documentation of employment. Now, many of the Hispanics who became homeowners find themselves mired in the national housing mess. Nearly 9,200 families in his district have lost their homes to foreclosure.
Foreclosure Crisis Hits Hispanics
Congressional districts with large Hispanic populations often feature heavy nonprime lending. See how different districts break down in terms of prime and nonprime home loans.
Mortgage lenders flooded Mr. Baca's San Bernardino, Calif., district with loans that often didn't require down payments, solid credit ratings or documentation of employment. Now, many of the Hispanics who became homeowners find themselves mired in the national housing mess. Nearly 9,200 families in his district have lost their homes to foreclosure.
Foreclosure Crisis Hits Hispanics
Congressional districts with large Hispanic populations often feature heavy nonprime lending. See how different districts break down in terms of prime and nonprime home loans. For years, immigrants to the U.S. have viewed buying a home as the ultimate benchmark of success. Between 2000 and 2007, as the Hispanic population increased, Hispanic homeownership grew even faster, increasing by 47%, to 6.1 million from 4.1 million, according to the U.S. Census Bureau. Over that same period, homeownership nationally grew by 8%. In 2005 alone, mortgages to Hispanics jumped by 29%, with expensive nonprime mortgages soaring 169%, according to the Federal Financial Institutions Examination Council.
An examination of that borrowing spree by The Wall Street Journal reveals that it wasn't simply the mortgage market at work. It was fueled by a campaign by low-income housing groups, Hispanic lawmakers, a congressional Hispanic housing initiative, mortgage lenders and brokers, who all were pushing to increase homeownership among Latinos.
The network included Mr. Baca, chairman of the Congressional Hispanic Caucus, whose district is 58% Hispanic and ranks No. 5 among all congressional districts in percentage of home loans not tailored for prime borrowers...But there is evidence that Hispanic borrowers have been hard hit. In part, that's because of large Hispanic populations in areas where the housing bubble was pronounced, such as Southern California, Nevada and Florida....Hogar's ties to the subprime industry were substantial. A Washington Mutual vice president served as chairman of its advisory committee. Companies that donated $150,000 a year got the right to place a research fellow who would conduct Hogar's studies, which were used by industry lobbyists. For donations of $100,000 a year, Hogar offered to provide news releases from the Hispanic Caucus promoting a lender's commercial products for the Latino market, according to the group's literature.
Hogar worked with Freddie Mac on a two-year examination of Latino homeownership in 63 congressional districts. The study found Hispanic ownership on the rise thanks to "new flexible mortgage loan products" that the industry was adopting. It recommended further easing of down-payment and underwriting standards....At the height of the subprime lending boom, in 2005, banking and finance companies gave at least $2.3 million in campaign contributions to members of the Hispanic Caucus, according to data from the Center for Responsive Politics....
Hogar worked with Freddie Mac on a two-year examination of Latino homeownership in 63 congressional districts. The study found Hispanic ownership on the rise thanks to "new flexible mortgage loan products" that the industry was adopting. It recommended further easing of down-payment and underwriting standards....At the height of the subprime lending boom, in 2005, banking and finance companies gave at least $2.3 million in campaign contributions to members of the Hispanic Caucus, according to data from the Center for Responsive Politics....
Mortgage lending to Hispanics took off between 2004 and 2007, powered by nonprime loans. The biggest jump occurred in 2005. The 169% increase in nonprime mortgages to Hispanics that year outpaced a 122% gain for blacks, and a 110% increase for whites, according to a Journal analysis of mortgage-industry and federal-housing data. Nonprime mortgages carry high interest rates and are tailored to borrowers with low credit scores or few assets.Between 2004 and 2007, black borrowers were offered nonprime loans at a slightly higher rate than Hispanics, but the overall number of Hispanic borrowers was much larger. From 2004 to 2005, total nonprime home loans to Hispanics more than tripled to $69 billion from $19 billion, and peaked in 2006 at $73 billion.
Representatives of subprime lenders passed on "little tricks of the trade" to get borrowers qualified, he says, such as adding a borrower's name to a relative's bank account, an illegal maneuver. Mr. Nguygn says he's now volunteering time to help borrowers facing foreclosure negotiate with banks.
Many loans to Hispanic borrowers were based not on actual income histories but on a borrower's "stated income." These so-called no-doc loans yielded higher commissions and involved less paperwork.
Another problem was so-called NINA -- no income, no assets -- loans. They were originally intended for self-employed people of means. But Freddie Mac executives worried about abuse, according to documents obtained by Congress. The program "appears to target borrowers who would have trouble qualifying for a mortgage if their financial position were adequately disclosed," said a staff memo to Freddie Mac Chairman Richard Syron. "It appears they are disproportionately targeted toward Hispanics."
Freddie Mac says it tightened down-payment requirements in 2004 and stopped buying NINA loans altogether in 2007....Regions of the country where the housing bubble grew biggest, such as California, Nevada and Florida, are heavily populated by Latinos, many of whom worked in the construction industry during the housing boom. When these markets began to weaken, bad loans depressed the value of neighboring properties, creating a downward spiral. Neighborhoods are now dotted with vacant homes."
Many loans to Hispanic borrowers were based not on actual income histories but on a borrower's "stated income." These so-called no-doc loans yielded higher commissions and involved less paperwork.
Another problem was so-called NINA -- no income, no assets -- loans. They were originally intended for self-employed people of means. But Freddie Mac executives worried about abuse, according to documents obtained by Congress. The program "appears to target borrowers who would have trouble qualifying for a mortgage if their financial position were adequately disclosed," said a staff memo to Freddie Mac Chairman Richard Syron. "It appears they are disproportionately targeted toward Hispanics."
Freddie Mac says it tightened down-payment requirements in 2004 and stopped buying NINA loans altogether in 2007....Regions of the country where the housing bubble grew biggest, such as California, Nevada and Florida, are heavily populated by Latinos, many of whom worked in the construction industry during the housing boom. When these markets began to weaken, bad loans depressed the value of neighboring properties, creating a downward spiral. Neighborhoods are now dotted with vacant homes."
Also, see Palin's historic speech ignored in Big Media as is much more!!! and scroll down to:
"Check the words of an article from 1995 to begin to introduce ACORN and what Obama has to do with it.
Planting Seeds of DisasterACORN, Barack Obama, and the Democratic party -By Stanley Kurtz ‘You’ve got only a couple thousand bucks in the bank. Your job pays you dog-food wages. Your credit history has been bent, stapled, and mutilated. You declared bankruptcy in 1989. Don’t despair: You can still buy a house.” So began an April 1995 article in the Chicago Sun-Times that went on to direct prospective home-buyers fitting this profile to a group of far-left “community organizers” called ACORN, for assistance. In retrospect, of course, encouraging customers like this to buy homes seems little short of madness."-Now ask yourself who would have encouraged such recklessness. Democrats or Republicans. Obama like policies or Bush like policies. As McCain said, "Senator McCain said government-backed mortgage giants Fannie Mae and Freddie Mac were the "match that lit [the] fire." "I'll betcha you may never even heard of them before this crisis. But you know, they're the ones that with the encouragement of Senator Obama and his cronies and his friends in Washington that went out and made all these risky loans, gave them to people that couldn't never afford to pay back," said McCain."..."McCain continued that while he was pushing for legislation to stop greed and excess, Senator Obama was becoming the second largest recipient of political donations from Fannie and Freddie in history."
"Check the words of an article from 1995 to begin to introduce ACORN and what Obama has to do with it.
Planting Seeds of DisasterACORN, Barack Obama, and the Democratic party -By Stanley Kurtz ‘You’ve got only a couple thousand bucks in the bank. Your job pays you dog-food wages. Your credit history has been bent, stapled, and mutilated. You declared bankruptcy in 1989. Don’t despair: You can still buy a house.” So began an April 1995 article in the Chicago Sun-Times that went on to direct prospective home-buyers fitting this profile to a group of far-left “community organizers” called ACORN, for assistance. In retrospect, of course, encouraging customers like this to buy homes seems little short of madness."-Now ask yourself who would have encouraged such recklessness. Democrats or Republicans. Obama like policies or Bush like policies. As McCain said, "Senator McCain said government-backed mortgage giants Fannie Mae and Freddie Mac were the "match that lit [the] fire." "I'll betcha you may never even heard of them before this crisis. But you know, they're the ones that with the encouragement of Senator Obama and his cronies and his friends in Washington that went out and made all these risky loans, gave them to people that couldn't never afford to pay back," said McCain."..."McCain continued that while he was pushing for legislation to stop greed and excess, Senator Obama was becoming the second largest recipient of political donations from Fannie and Freddie in history."
Also, for more on this crisis that has killed our economy see:
New York Times not telling you the whole story once again
Media is not giving you the whole Mortgage Crisis story: Fannie and Freddie is Enron x 19/Microsoft Sized Monopoly/Leading Compaign Giver and LobbyistThe Economy and what Big Media is not telling you...
Obama's connection with Fannie Mae and Freddie Mac ignored in Big Media. The Fact that Bush tried to reform Freddie and Fannie ignored in Big Media.
Mortgage Crisis
Orson Scott Card (Democrat who is also, highly critical of the free-market and capitalism) writes a powerful argument and telling piece!!! Must read!!
$4.6 of the $6.6 trillion mortgage-backed securities at the heart of the financial crisis are from Government Sponsored Enterprises!!!!
Dow has gained 1400 points since 11/21/2008 after dropping 2000 points from 11/4/2008 to 11/20/2008 inspite of recession and unemployment news...
New York Times refutes itself when blaming Bush for the economic crisis. Fannie and Freddie leveraged their government-sponsored advantages...
BBC News: "Fannie...and...Freddie is the biggest corporate rescue in history...leaving a grey area between being government owned and private sector"
Fannie and Freddie CEO's make it clear that Fannie and Freddie were not truely private sector companies....
The economy and the cause and how many know enough to justify their vote? Testimony of Brian Welch of Korn. Jill Stanek's blog moves into top 7000.
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