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highly prescient 1999(!) article from the New York Times
From: David Farber <dave () farber net>
Date: Thu, 25 Sep 2008 20:20:21 -0400
Also read Deer Hunting for Jesus Begin forwarded message: From: "Perry E. Metzger" <perry () piermont com> Date: September 25, 2008 4:23:14 PM EDT To: dave () farber net Subject: possibly for IP... This has been making the rounds. It is a highly prescient 1999(!) article from the New York Times about the brave new world of subprime mortgages. http://query.nytimes.com/gst/fullpage.html?res=9C0DE7DB153EF933A0575AC0A96F958260&sec=&spon=&pagewanted=all Initial fun quotes: The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring. 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. And here's the money shot: In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's. Perry ------------------------------------------- Archives: https://www.listbox.com/member/archive/247/=now RSS Feed: https://www.listbox.com/member/archive/rss/247/ Powered by Listbox: http://www.listbox.com
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- highly prescient 1999(!) article from the New York Times David Farber (Sep 25)