Who wrecked the housing market?

A mortgage broker explains how the housing market was destroyed:

In 2003, '04, '05, etc., Fannie Mae held numerous seminars all over the country, teaching mortgage brokers how to do "rapid rescores" so unqualified borrowers could get mortgages. FNMA taught the brokers to send a fax to the credit bureaus, challenging every negative item on a potential borrowers' credit report. The credit bureaus would remove the negative information and immediately issue a new credit score, which the mortgage broker would then use to obtain a loan for the borrower.

The credit bureaus would then query the lenders who originally submitted the negative information. The lenders would of course confirm that the information was valid, and it would be reposted on the borrower's credit report. But the mortgage would already have been completed and locked in by then.

Fannie Mae would then buy up all these mortgages and package them into securities which they sold to investors. Fannie Mae knew which securities were filled with sound mortgages and which ones were filled with rapid rescores. They sold the sound securities to their cronies and foisted the unsound packages onto unsuspecting investors.

Most of these mortgages were adjustable rate mortgages. After three years, the interest rate would be adjusted upward, which doubled or tripled the monthly payments required from the borrowers. In most cases, the new required payments were more than the borrowers' entire income! So of course they defaulted! And the securities made of all these unsound mortgages defaulted.

Add to this the fact that large banks who had bought some of these unsound securities hedged their bets by buying a type of derivative called a "credit default swap." Basically, the writers of these derivatives pledged to act as insurance companies, paying for the default when the package of mortgages went bad. Except they never had any reserves with which to pay for these defaults (as the government requires of legitimate insurance companies). More about that part of the fiasco can be seen at http://www.cpnlive.com/forum/post/1500640 We Need SMARTER Regulation

Back in '03, '04, and '05, when these fraudulent mortgages were being written, Fannie Mae executives were giving themselves ten and twenty million dollar bonuses for doing such a great job of getting so many more (fraudulent) mortgages issued. Who were these executives? Largely politicians who had been voted out of office (mostly Democrats, but some Republicans, too) and former Clinton and Bush administration officials.

As obviously criminal as all of the above is, what really tops it off is that this entire program of fraud was done on a schedule timed to make the entire financial system collapse in 2008 - just before the Presidential election! All these adjustable rate mortgages were written in '04 and '05 so that the rates would adjust up in three years - in '07 and '08.

Wall Street executives knew full well what was happening. During these years, did they protect their investors by refusing to buy these securities they knew to be fraudulent? No! Instead, they donated hundreds of millions of dollars to Congressmen and Senators - buying IN ADVANCE the "bailout bill" of 2008 that they (the Wall Street execs) knew was going to be needed to cover the bad investments they were making!

All through W's administration, leftist politicians kept crowing, "Bush is a dummy!" Maybe they were right, but for a reason other than what they want you to believe. W kept talking about "crossing the aisle" and "avoiding gridlock" and "getting along with the other party." Meanwhile, the other party was robbing all of us blind! If W wasn't a dummy (or did he KNOWINGLY consent to all this?) he would have had the Justice Department prosecute Fannie Mae officials for conducting the TRILLIONS of dollars of fraud they were committing!

Most of the above information came from "A Mortgage Broker on Rapid Credit Rescores for Subprime Loans" dated December 07, 2011. It's posted at:
http://www.rushlimbaugh.com/daily/2011/12/07/a_mortgage_broker_on_rapid_credit_rescores_for_subprime_loans
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A note to all "rich" people:

You need to realize what you're up against. A clear majority of high officials in D.C. are CRIMINALS! Not just "liberals!" They are carrying out a campaign that goes FAR beyond anything FDR ever dreamed of. They are taking us down the same road Lenin took Russia in 1917! And they are taking us ALL THE WAY down that road! To the same conclusion Lenin took Russia - with beheadings and everything! The "fundamental change" Obama promised is not just a leftward movement like LBJ brought, it's a COMPLETE DESTRUCTION of the American system!

Do not think that you can ride out this attack! THEY PLAN TO KILL YOU! AND YOUR HEIRS! If you do not get serious very soon about giving A LOT of support to the people fighting the politicians for our freedom, you will lose not just your freedom, you will lose your life!

When America falls, where can you go? If freedom is lost here, it is lost everywhere! It truly will be "a thousand years of darkness!" There will be no hope of EVER getting it back! This is our LAST STAND! Get serious! Or we will all be dead!

This is a test post to see if the site fixed the problem that made posting impossible.