Why Did Fannie Mae Fail?

Taking a Stand Against Foreclosures
October 9, 2008
Luckiest Mom in all of College Station – Maybe the World.
October 12, 2008

Why Did Fannie Mae Fail?

With all that is going on in the mortgage and banking world right now, don’t you wonder WHY? Why did this mess begin? What started it? Didn’t anyone see it coming?

Yes – someone saw it coming. The New York Times actually reported it coming back on September 30th in 1999. How many years ago is that? Maybe it was while Clinton was President, not George Bush….

In 1999 Steven Holmes from the New York Times wrote that Fannie Mae was under extreme pressure from the Clinton Administration to expand mortgage loans to low and moderate income people. In doing this “Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times…. but may run into trouble in an exonomic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980’s”. 

Do you remember the 80’s when WE bailed out the savings and loan industry? Often times we forget our past, our history and with that we repeat it over and over. Bailout – something new? NO WAY! We do it over and over and over. As much as I disliked my history courses in school and as much as my husband will razz me over saying this….

Maybe we should pay more attention to our past so we do not continue to repeat it but instead make better choices for our future.

 

Susan Hilton

Susan Hilton – Realtor & Sales Trainer for Century 21 Beal

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