FLASHBACK to September 30, 1999: Fannie Mae Eases Credit To Aid Mortgage Lending
An article that appeared in the September 30, 1999 issue of the New York Times written by Steven A. Holmes titled:
Fannie Mae Eases Credit To Aid Mortgage Lending – 9/30/1999
“Fannie Mae, the nation’s biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.”
(emphasis mine)
And . . .
“In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980’s.
”From the perspective of many people, including me, this is another thrift industry growing up around us,” said Peter Wallison a resident fellow at the American Enterprise Institute. ”If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.”
Download a PDF version of the article to email to friends and family:Â ny_times_09-30-99 (PDF)
October 9, 2008 - 07:41 AM on October 9th, 2008
[...] at http://rightvoices.com/2008/10/03/flashback-to-september-30-1999-fannie-mae-eases-credit-to-aid-mort…  for a summary of a warning in The New York Times back in 1999.  Here is the whole article: [...]