Sunday, September 28, 2008

Burning Down The House - Substantiations

Below, you will find citations substantiating
almost all assertions presented in the second video in the post titled:
1977 Community Reinvestment Act - Carter, Clinton, Obama.

Note: Clicking the previous link will open a new browser instance so that you may pause the video and come back to this page to substantiate any given assertion.

I may add a few more citations over time.
Some citations will disappear over time (as the sources delete them).

1) Timestamp = 0:23
Subprime Lender Implosion: Bad Omen For Housing Market

2) Timestamp = 0:35
Wikipedia - Community Reinvestment Act

3) Timestamp = 0:47
Wikipedia - CRA - Clinton Administration Changes of 1995

Note - The following quotes have, for reasons probably to do more with politics than fact checking, been removed from the Wikipedia entry. However, for now, both quotes are still available in the Google cached version:

“Part of the increase in home loans was due to…lenders, like Countrywide, that do not mitigate loan risk…using the new subprime authorization”

“The revisions allowed the securitization of CRA loans containing subprime mortgages.”

4) Timestamp = 1:00
Equitable Development Toolkit - CRA
Also see the home page for the above citation.

5) Timestamp = 1:03
The Trillion-Dollar Bank Shakedown That Bodes Ill for Cities

6) Timestamp = 1:10
Bear, Stearns & Co. Price Securities Offering Backed By Affordable Mortgages

7) Timestamp = 1:15
Fannie Mae Announces Pilot to Purchase $2 Billion of "MyCommunityMortgage" Loans

8) Timestamp = 1:20
Going Subprime

9) Timestamp = 1:22
Chart of Fannie Mae Subprime, Alt A, Other Purchases 1995-1999:
Still looking (charts are harder to Google).

10) Timestamp = 1:26
OFHEO Price Index Chart (subset looking at 1992-1998):
See this chart, from page six of this document.

Side Note: For purposes of understanding that the national housing market bottomed out in February of 2008, the above links documenting “quarterly price change” and “four quarter price change” should be compared against the monthly median sales price data presented in this post.

11) Timestamp = 1:44
Fannie's Perilous Pursuit of Subprime Loans

12) Timestamp = 1:49
Chart depicting “Adjustable Rate Loans” & “Affordability Products”:
Derived from this chart from page 2 (as Adobe sees it) of this document.

13) Timestamp = 1:52
Another quote from - citation #7:
“give flexibility to lenders by allowing variances that borrowers need to qualify for loans”

“These variances apply to… loan-to-value ratio, borrower contribution, housing expense-to-income ratio, and others”

14) Timestamp = 2:09
Still looking for a substantiating source for these assertions:
“2004 Fannie Mae Subprime Loans: 92% were Variable Rate”
“2005 Fannie Mae Subprime Loans: 91% were Variable Rate”

14A) Timestamp = 2:12
Still looking for a substantiating source for the stacked chart of:
“Fannie Mae Subprime, Alt A, Other Purchases”
(stacking “Variable Rate” on “Other”)

15) Timestamp = 2:19
An expanded view of citation #10 to include more years of data.

16) Timestamp = 2:24
Chart depicting “Variable Rate Mortgage Payments Explode”:
See this chart from this page.

17) Timestamp = 2:34
Chart depicting “Loans with Affordability Features and Adjustable Rates Have Lost Significant Market Share”:
This is an expanded view of one of the charts in citation #12.

18) Timestamp = 2:38
Caused the Collapse of Subprime Credit Organizations Chart:
This chart from page 3 (as Adobe sees it) of this document.

19) Timestamp = 2:45
An even more expanded view of citation #10 to include more years of data.

20) Timestamp = 2:48
Skyrocketing Subprime Delinquencies Chart:
This chart from page 3 (as Adobe sees it) of this document.

21) Timestamp = 2:53
Options expert calls Fannie, Freddie shares 'worthless'

22) Timestamp = 2:57
Regulators Spin Public to Boost Fannie, Freddie: Jonathan Weil

23) Timestamp = 3:01
12th bank failure of the year announced

24) Timestamp = 3:09
IMF says US crisis is 'largest financial shock since Great Depression'

25) Timestamps = 3:20, 3: 22, 3:25, 3: 28, 3: 35
Charts of Home Prices & Inflation:
I believe the data come from The National Association of Realtors and the Bureau of Labor Statistics. I will probably create my own chart and cite the sources. For now, there are similar charts available which document the decoupling of home prices from CPI just after Clinton’s revisions to the CRA (and predict, in 2006, the bursting of the housing bubble).

26) Timestamp = 3:46 through 4:07
New Agency Proposed to Oversee Freddie Mac and Fannie Mae includes:

A) These quotes:
“The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.”

“a new agency would be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that are the two largest players in the mortgage lending industry.”

“Supporters of the companies said efforts to regulate the lenders tightly under those agencies might diminish their ability to finance loans for lower-income families”

B) This quote from Barney Frank, (D-MA):
“The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.”

C) This quote from Melvin Watt, (D-NC):
“and in the process weakening the bargaining power of poorer families and their ability to get affordable housing”

27) Timestamp = 4:17
John McCain Warned of Mortgage Collapse In 2005

28) Timestamps = 4:23 through 4:33
S. 190 [109th]: Federal Housing Enterprise Regulatory Reform Act of 2005

29) Timestamp = 4:42
Chris Dodd’s Loan Problem

30) Timestamp = 4:52
Obama turns to trusted political insider Jim Johnson for key campaign role

31) Timestamp = 5:21
Barack Obama advisor Jim Johnson quits under fire

32) Timestamp = 5:25
James Johnson resigns from Obama team

32A) Timestamp = 5:29
The “Center for Responsive Politics” site reports this data.

33) Timestamp = 5:37
Countrywide Friends Got Good Loans
(Raines - $7.6 million dollar home)

34) Timestamp = 5:40
Advice from Raines
Note: Obama has tried to run from this one. But, I believe Ann Althouse has proven neither Obama nor the Washington Post can run from this one.

35) Timestamp = 5:52
On the Outside Now, Watching Fannie Falter:
“Franklin Raines, who stepped down at Fannie Mae four years ago, now has an office with a view of St. Matthews Cathedral at Revolution offices”

36) Timestamp = 5:57
This graphic from Countrywide Friends Got Good Loans

37) Timestamp = 6:02
Senior Fannie Mae bosses resign

38) Timestamp = 6:09
All Recipients of Fannie Mae and Freddie Mac Campaign Contributions, 1989-2008

39) Timestamp = 6:12
Fannie Mae contributions per year in Congress:
Various sources have done this calculations based on this data.
One example is found in this chart from this page.

40) Timestamp = 6:29
Miner, Barnhill and Galland - Chicago, Illinois - Obama’s employer.

41) Timestamp = 6:38
OBAMA'S LEGAL CAREER (fighting the utterly fabricated “red-lining”)

42) Timestamp = 6:53
Schools in Chicago Are Called the Worst By Education Chief

43) Timestamp = 6:56
Obama, Education, and Accountability

44) Timestamp = 7:00
Kids' protest highlights rich-poor schools gap in Illinois

45) Timestamp = 7:13
The Immigration Debate: Its Impact on Workers, Wages and Employers

46) Timestamp = 8:18
Fannie Mae, Freddie Mac blind to bubble

47) Timestamp = 8:20
4 Fannie Mae senior execs resign

48) Timestamp = 8:22
Pelosi: Dems bear no responsibility for economic crisis

49) Timestamp = 8:34
Obama Ridicules McCain's Economic Response

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