Like the shitshow Bill Clinton left in his wake which led to the Financial Crisis? Fannie Mae Eases Credit To Aid Mortgage Lending "Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits." Fannie Mae Eases Credit To Aid Mortgage Lending - The New York Times (nytimes.com)
Noting your linked article is from 1999, you are aware that the overwhelming majority of mortgage loan defaults and foreclosures that triggered the bursting of the housing bubble in 2007 and 2008 were exploding ARM loans that originated after 2003? By way this a quote from another president citing his accomplishments when he ran for reelection in 2004. Record of Achievement - George W. Bush - Expanding Home Ownership And this was a warning from 2006 Subprime "Exploding" ARMs Pose High Risks for Debt-Strapped Families | Center for Responsible Lending Another article on the subject from 2007 https://www.jec.senate.gov/public/_...f85-b61f8a677c28/subprime11apr2007revised.pdf Over the past several months, it has become increasingly clear that irresponsible subprime lending practices have been contributing to a wave of foreclosures that are hitting homeowners and rattling the housing markets. (For more information on subprime loans, see Box A on page 3.) The loan product that has both fueled the recent growth in the subprime market over the past two years and that is largely responsible for the foreclosure spikes is the so-called “exploding ARM.” These are hybrid adjustable rate mortgages that offer a 30-year loan with an initial fixed rate that is set below market rates (often called a “teaser” rate). When the rate resets after an initial fixed rate period (commonly two to three years, hence the nicknames “2/28s” and “3/27s”), it often resets to a more onerous rate that leads to a significantly higher mortgage payment. 1 Exploding ARMS are almost exclusively underwritten to the subprime market, and the majority of subprime originations over the past several years were “2/28s” and “3/27s.”
I would suggest that you do a little research rather than relying on the common narrative of the right-wing media that the subprime mortgage crisis was the fault of the 1999 Clinton directive. So a Clinton Administration policy from 1999 didn't have any effect until 2003 and an ultimate impact until 2007 and 2008? The real cause of the 2007/2008 housing collapse was a system that allowed unscrupulous lenders, real estate developers and brokers and investment banks to prey on financially unsophisticated home buyers and in the case of refinances homeowners. GSEs like Fannie Mae and Freddie Mac which were the subject of Clinton directive actually weren't involved in a majority of the subprime loans. Some lenders even exacerbated the problem by punishing prudent loan officers. They evaluated their employees using the metric of the number of loans closed. Prudent loan officers who declined loan applications from unqualified buyers and failed to meet their quota of closed loans were penalized. Similarly appraisers were relied lenders for their contracts were awarded for over valuing properties and were punished for more prudent appraisals. The con was that financially unsophisticated unqualified buyers were persuaded to take out loans that they couldn't afford; the lenders would then sell the loans to investment banks which would in turn then dice and slice them into mortgage-backed securities which were sold to unsuspecting investors who relied on incompetent ratings services that gave the securities AAA ratings. Ultimately the whole system fell apart creating the financial crisis of 2008. From a 2011 report of the Financial Inquiry Commission on the financial crisis of 2008. The Commission found GSE loans had a delinquency rate of 6.2% in 2008 versus 28.3% for non-GSE or private label loans.[40] Taking the roughly 25 million mortgages outstanding at the end of each year from 2006 through 2009 and subdividing them into 500+ subgroups according to characteristics like credit scores, down payment and mortgage size, mortgage purchaser/guaranteer, etc., the Commission found the average rate of serious delinquencies much lower among loans purchased or guaranteed by government sponsored organizations such as the FHA, Fannie Mae and Freddie Mac, than among non-prime loans sold into "private label" securitization.[41] (see "Loan Performance in Various Mortgage-Market Segments" chart)Government policies and the subprime mortgage crisis - Wikipedia
“Nasdaq jumps 1% after strong GDP report,“. Thanks President Biden! Meanwhile Desantis burns books and wants to lock up teachers. Mmmm, has that ever happened before in other countries? “Teachers in Manatee County, Florida, are being told to make their classroom with "unvetted" books — inaccessible to students, or risk felony prosecution.”
meanwhile gas is at 3.48 a gallon, highest in 2 months and going higher everyday, soon to eat up wage increases.
New underwriting guidelines took some time to implement and borrowers didn't default in Year 1. Mortgage rates dropped down significantly after 9/11 so many loans were opened in 2002-2003. Defaults started in 2006 and 2007 on 3-year and 5-year ARM's.