From: Jennifer S.
Sent: October 15, 2012
To: undisclosed recipients
Subject: Fw: Obama Sued Citibank
FannieMae has been around as long as you and I, around 1938, I believe. Jimmy Carter who said ‘everyone is entitled to own their own home’ and changed the whole purpose of both agencies FannieMae and FreddieMac – the government will ensure no bank or financial will lose any money from loans made toward a mortgage.
This was followed closely with Bill Clinton pushing even harder to make loans easier to obtain issuing an EO (executive order) forcing banks to make bad loans by altering the scoring system previously used – a real vote getter for those who could not otherwise afford a home.
Followed closely with Barack Hussein Obama’s push to force banks to lend to unqualified borrowers.
The problem that existed was there were no oversight. No good examinations taking place by any agency. The banks had ‘free reign.’
Small Banks and other financial institutions soon learned to ‘bundle’ loans. You make 10 loans – 8 good ones, 1 sort of suspect and 1 you know for sure will fail. You sell these 10 loans up the line to a District or a larger institution. The District then bundles the bundles – i.e. they take 10 bundles (most containing the same as described – at least 10 bad loans and at least 10 loans which are of suspect). The bundled bundles are sold to the only folks who can purchase such an item – big banks – the ones that are too big to fail – Bank of America, J.P. Morgan Chase, Citigroup, Wells Fargo, Goldman Sachs Barclays just to name a few. What happened when all of this started unraveling? Well, we all know what happened. And oh yes, BTW – it was Bush’s fault.
Found this on newsalertusa.com. HHmmmm, Obama sued Citibank in 1995 to force the bank to lend to unqualified borrowers and continued the practice with his administration!! Robert Rubin, Clinton's Treasurer, had just released Clinton's executive order trying to force banks to make these bad loans with a new bank scoring system with 60 percent of the score determined by making bad loans!!! Banks could expand only with a high score!!!
Jennifer
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President Barack Obama was a pioneering contributor to the national subprime real estate bubble, and roughly half of the 186 African-American clients in his landmark 1995 mortgage discrimination lawsuit against Citibank have since gone bankrupt or received foreclosure notices.
As few as 19 of those 186 clients still own homes with clean credit ratings, following a decade in which Obama and other progressives pushed banks to provide mortgages to poor African Americans.
The startling failure rate among Obama’s private sector clients was discovered during The Daily Caller’s review of previously unpublished court information from the lawsuit that a young Obama worked on as an attorney for the lead plaintiff. [RELATED: Learn about the 186 class action plaintiffs]
Since the mortgage bubble burst, some of his former clients are calling for a policy reversal.
“If you see some people don’t make enough money to afford the mortgage, why would you give them a loan?” asked Obama client John Buchanan. “There should be some type of regulation against giving people loans they can’t afford.”
Banks “were too eager to lend to many who didn’t qualify,” said Don Byas, another client who saw banks lurch from caution to bubble-inflating recklessness. [RELATED: Obama's Citibank plaintiffs hit hard when housing bubble burst]
“I don’t care what race you are. … You need to keep financial wisdom [separate] from trying to help your people,” said Byas, an autoworker.
Nonetheless, Obama has pursued the same top-down mortgage lending policies in the White House.
Obama’s lawsuit was one element of a national “anti-redlining” campaign led by Chicago’s progressive groups, who argued that banks unfairly refused to lend money to people living within so-called “redlines” around African-American communities. The campaign was powered by progressives’ moral claim that their expertise could boost home ownership among the United States’ most disadvantaged minority, African-Americans. [RELATED: Obama's African-American clients got coupons, not cash]
Progressive activists’ ambition instead contributed greatly to a housing bubble that burst in 2007, crashed the nation’s economy in 2008, wiped out at least $4 trillion in equity, kept unemployment above 8 percent for four years, and damaged the intended beneficiaries of looser mortgage lending standards.
In the White House, Obama has continued to intensify regulatory pressure on banks to provide more risky loans to African-Americans and Latinos. He has used lawsuits to fund his allies. And taxpayers are now unwittingly contributing to a re-inflation of housing prices.
Meanwhile, the president has blamed the housing bubble on supposed GOP deregulation, even though President George W. Bush expanded the regulation-expanding, anti-redlining policies established by progressives during Bill Clinton’s presidency.
“Governor Romney’s plan would… roll back regulations on big banks,” Obama says of his Republican challenger Mitt Romney in a 2012 TV ad titled “The Choice.”
“But you know what? We tried that top-down approach. It’s what caused the mess in the first place.”
The Lawsuit
Fay Clayton, a Chicago progressive activist, initiated the discrimination lawsuit in 1994. Obama’s employer, a lawyer named Judson Miner, allied with Clayton to file a class-action lawsuit a year later.
Obama appeared at Clayton’s office “saying he was the new associate on the case,” Clayton said in a statement to The Daily Caller. “I remember Barack arriving — he was industrious, he enjoyed the work, he was clearly smart and dedicated.”
The suit named three African-American plaintiffs, but later added 183 whom Citibank or its subsidiaries had allegedly rejected for mortgages in 1993 and 1994.
Some of the plaintiffs told TheDC about their rejections by Citibank.
Citibank’s lending agent “told me that I needed to put thousands of dollars down [to increase equity]… I was so upset at that, I said ‘’Do I look like I have ‘stupid’ on my forehead?’” said Maudestine McLeary.
Byas said he had a Citibank mortgage on his property in Austin, a West Side Chicago neighborhood, but was rejected when he sought a mortgage to buy a house in the troubled Maywood district.
“Chicago had been redlining people for years and years … [and] you knew this kind of crap happened,” said Dale Freeman, an operations manager at the Federal Reserve Bank of Chicago. He quickly got a loan from another bank to buy a house in the wealthy South Side neighborhood of Hyde Park, where he and his family still live.
Citibank defended the cautious way it loaned out its shareholders’ money, saying that “the underwriting criteria were racially neutral on their face … [and] that each of the named defendants was denied the home loans he or she requested due to his or her lack of financial qualifications,” according to a June 1995 summary by the judge who heard Obama’s discrimination case.
Citibank had a significant amount of data to back up its case.
For example, when the 186 clients submitted their names for compensation in 1998, it turned out that least 19 had bankrupted or received foreclosure notices even before December 1997. Another 18 of the 186 clients would go under within three years because of financial pressures. [RELATED: Plaintiffs in 1995 Obama-led Citibank lawsuit submitted class action claims.
Read more: http://dailycaller.com/2012/09/03/with-landmark-lawsuit-barack-obama-pushed-banks-to-give-subprime-loans-to-chicagos-african-americans/#ixzz25XJhdwfb
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