Obama's Fannie Mae/Freddie Mac Connection-Truth!
Campaign Contributions From Fannie Mae & Freddie Mac for Senator Barack Obama-Truth!
Summary of eRumor:
An eRumor called the “Barack Obama’s Fannie Mae/Freddie Mac Connection” claiming that Senator Barack Obama ranked the number two spot in campaign contributions from Fannie Mae and Freddie Mac.
John Gibson of Fox News wrote an article by this title on September 16, 2008, quoting sources from the Center for Responsive Politics. In it, Gibson stated that Fannie Mae and Freddie Mac had used “huge lobbying budgets and political contributions to keep regulators off their backs.” According to the article, “The top three U.S. senators getting big Fannie and Freddie political bucks were Democrats and No. 2 is Sen. Barack Obama.”
The Center for Responsive Politics (CRP), according to their web site, is a “nonpartisan guide to money’s influence on U.S. elections and public policy.”
According to the report posted on the CRP web site Donations for the Illinois senator from Fannie Mae and Freddie Mac report between 1989-2008 tabulated up to $126,349. The same report show John McCain contributions from the same group tabulated to $21,550.
A New York Times article dated September 9,2008 stated both candidates had ties with the lending giants but Senator Obama “is second among members of Congress in donations from the firms’ employees and political action committees.”
Click here for the article
Click here for the Center for Responsive Politics on Campaign Contributions Reports
CLICK HERE for a list of other related stories about Barack Obama
A real example of the eRumor as it has appeared on the Internet:
He had the nerve to bring up the recent financial industry crisis and assign blame, but he didn’t mention that the top 3 recipients of campaign donations from Fannie Mae and Freddie Mac were Democrats — and that he was ranked #2. (Source: Barack Obama’s Fannie Mae/Freddie Mac Connection ).
And Senator Obama didn’t mention that he was among those ……………..
This crisis was caused by political correctness being forced on the mortgage lending industry in the Clinton era.
Before the Democrats’ affirmative action lending policies became an embarrassment, the Los Angeles Times reported that, starting in 1992, a majority-Democratic Congress “mandated that Fannie and Freddie increase their purchases of mortgages for low-income and medium-income borrowers. Operating under that requirement, Fannie Mae, in particular, has been aggressive and creative in stimulating minority gains.”
Under Clinton, the entire federal government put massive pressure on banks to grant more mortgages to the poor and minorities. Clinton’s secretary of Housing and Urban Development, Andrew Cuomo, investigated Fannie Mae for racial discrimination and proposed that 50 percent of Fannie Mae’s and Freddie Mac’s portfolio be made up of loans to low- to moderate-income borrowers by the year 2001.
Instead of looking at “outdated criteria,” such as the mortgage applicant’s credit history and ability to make a down payment, banks were encouraged to consider nontraditional measures of credit-worthiness, such as having a good jump shot or having a missing child named “Caylee.”
Threatening lawsuits, Clinton’s Federal Reserve demanded that banks treat welfare payments and unemployment benefits as valid income sources to qualify for a mortgage. That isn’t a joke — it’s a fact.
When Democrats controlled both the executive and legislative branches, political correctness was given a veto over sound business practices.
In 1999, liberals were bragging about extending affirmative action to the financial sector. Los Angeles Times reporter Ron Brownstein hailed the Clinton administration’s affirmative action lending policies as one of the “hidden success stories” of the Clinton administration, saying that “black and Latino homeownership has surged to the highest level ever recorded.”
Meanwhile, economists were screaming from the rooftops that the Democrats were forcing mortgage lenders to issue loans that would fail the moment the housing market slowed and deadbeat borrowers couldn’t get out of their loans by selling their houses.
A decade later, the housing bubble burst and, as predicted, food-stamp-backed mortgages collapsed. Democrats set an affirmative action time-bomb and now it’s gone off.
In Bush’s first year in office, the White House chief economist, N. Gregory Mankiw, warned that the government’s “implicit subsidy” of Fannie Mae and Freddie Mac, combined with loans to unqualified borrowers, was creating a huge risk for the entire financial system.
Rep. Barney Frank denounced Mankiw, saying he had no “concern about housing.” How dare you oppose suicidal loans to people who can’t repay them! The New York Times reported that Fannie Mae and Freddie Mac were “under heavy assault by the Republicans,” but these entities still had “important political allies” in the Democrats.
Now, at a cost of hundreds of billions of dollars, middle-class taxpayers are going to be forced to bail out the Democrats’ two most important constituent groups: rich Wall Street bankers and welfare recipients.
Political correctness had already ruined education, sports, science and entertainment. But it took a Democratic president with a Democratic congress for political correctness to wreck the financial industry.