Why did Bush order his appointees at Fannie Mae to make 440 BILLION in sub-prime loans?
Bush appoints the management of freddie mac and fannie mae and “asked” his appointees to make 440 BILLION in loans to poor minorities. He also asked for 2.4 billion in tax credits (corporate welfare) for homebuilders who build low income housing. And he asked for 200 million per year to pay the mortgage closing costs. (If the president appoints you to your job and asks you to do something, that is pretty much an order if you want to keep your job)
This is what Bush’s offical press release states on June 17, 2002:
“Today, President Bush announced a new goal to help increase the number of minority homeowners by at least 5.5 million before the end of the decade. The President’s aggressive housing agenda will help dismantle the barriers to homeownership by providing down payment assistance, increasing the supply of affordable homes, increasing support for self-help homeownership programs, and simplifying the home buying process & increasing education.
The President is issuing “America’s Homeownership Challenge” to the real estate and mortgage finance industries to join in his effort to increase the number of minority homeowners by 5.5 million families by the end of the decade. Many organizations have already responded to the President’s challenge by committing to:
“Substantially increase by at least $ 440 billion, the financial commitment made by the government sponsored enterprises involved in the secondary mortgage market, specifically targeted toward the minority market”
The President wants to dramatically increase the supply of homes available to low and moderate income families. The President has proposed the Single-Family Affordable Housing Tax Credit, which will provide approximately $ 2.4 billion to encourage the production of 200,000 affordable homes for sale to low and moderate income families.”