Bush Administration Proposed a New Agency to oversee Housing Industry in 2003-Tr

[frawin]

This is from truthorfiction.com, I was sure somewhere or sometime I had read something about the Bush administrations concerns over the lending practices of Fannie and Freddie.

Bush Administration Proposed a New Agency to oversee Housing Industry in 2003-Truth!


Summary of the eRumor: 
An eRumor quoting a New York Times article from 2003 that claims "the Bush administration had recommended the most significant regulatory overhaul in the housing industry" in a decade,  A new agency would be created under the Department of the Treasury to assume supervision of Freddie Mac and Fannie Mae.  The concept was met with opposition by the Congressional Democrats because at the time the lending agencies were not facing any kind of financial crisis.


The Truth: 
Stephen Labaton wrote this story for the New York Times and it was published September 11, 2003 and it is still archived at the newspaper.

According to the article, the Bush administration introduced the plan and it was well recieved by Fannie Mae and its leading rivals.  It was criticized by the Democrats in Congress and National Association of Home Builders who feared "that tighter regulation of the companies could sharply reduce their commitment to financing low-income and affordable housing." 

Congressman Barney Frank stated that they two major lenders were not facing any financial crisis at the time.

[pam]

Didn't republicans control congress in 2003? If they thought there was a problem they could've done somthin huh? Can't lay this one at the door of just one party, they all had a hand in it.

[mtcookson]

http://www.washingtonpost.com/wp-dyn/content/article/2008/09/11/AR2008091102841.html

[pam]

In another story they say Alan Greenspan pooh-poohed the concerns sayin he trusted the market and the market said there wasn't a problem.

Republicans controlled congress then, If they had thought there was a prolem they COULD have got somthin thru. The fact is NOBODY wanted to be the one who shot the so-called golden goose down. Now that the goose died on it's own everybody is tryin to take the credit and place the blame. They are STILL more worried about gettin re-elected than they are in what they can or can't do to fix it.

There is a whole segment of people who aren't gonna feel this that much untill later because they DON'T live on credit, they have mortgages they can afford, and they have been makin do and doin without all along. Those are the people who will come thru this.

[Teresa]

Pam.. you got a bulls-eye hit on that one!