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Response to sellitman (Original post)

Wed Dec 21, 2011, 10:14 AM

5. NY TIMES: [Bush] White House Philosophy Stoked Mortgage Bonfire

 

Lots of good info here--
http://www.nytimes.com/2008/12/21/business/21admin.html?pagewanted=all

...Brian Montgomery, the Federal Housing Administration commissioner, understood the significance. His agency insures home loans, traditionally for the same low-income minority borrowers Mr. Bush wanted to help. When he arrived in June 2005, he was shocked to find those customers had been lured away by the “fool’s gold” of subprime loans. The Ameriquest settlement, he said, reinforced his concern that the industry was exploiting borrowers.

In December 2005, Mr. Montgomery drafted a memo and brought it to the White House. “I don’t think this is what the president had in mind here,” he recalled telling Ryan Streeter, then the president’s chief housing policy analyst.

It was an opportunity to address the risky subprime lending practices head on. But that was never seriously discussed. More senior aides, like Karl Rove, Mr. Bush’s chief political strategist, were wary of overly regulating an industry that, Mr. Rove said in an interview, provided “a valuable service to people who could not otherwise get credit.” While he had some concerns about the industry’s practices, he said, “it did provide an opportunity for people, a lot of whom are still in their houses today.”

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sellitman Dec 2011 OP
treestar Dec 2011 #1
pkdu Dec 2011 #2
MADem Dec 2011 #3
sellitman Dec 2011 #9
MADem Dec 2011 #11
LiberalAndProud Dec 2011 #4
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rfranklin Dec 2011 #5
rfranklin Dec 2011 #7
JHB Dec 2011 #6
tjwash Dec 2011 #8
sellitman Dec 2011 #10
JHB Dec 2011 #14
rurallib Dec 2011 #12
JohnnyRingo Dec 2011 #13
surfdog Dec 2011 #15
JHB Dec 2011 #16
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