Affordable Housing Goals Didn’t Doom Fannie — New York Real Estate #Newyork #New _york #realestate #money #economy #finance

Affordable Housing Goals Didn’t Doom Fannie

by John Tayeb on April 15, 2010

Affordable Housing

Federal affordable housing goals weren’t responsible for the collapse of Fannie Mae and Freddie Mac, Assistant Treasury Secretary Michael Barr said Tuesday in a speech to the Mortgage Bankers Association.

“This claim simply is not supported by the facts,” Barr said.

Instead, Barr said management’s decision to lower standards in order to compete with Wall Street for profitability drove Fannie and Freddie to risk too much on poorly underwritten loans and the sale of questionable securities.

Fannie and Freddie “relaxed standards for the same reasons other market participants relaxed standards: old-fashioned greed and flawed regulation,” Barr said.


Source: The Wall Street Journal, Nick Timiraos (04/13/2010)

Posted via web from New York Real Estate Access…A Real Estate Blog

Advertisements
This entry was posted in New York Real Estate. Bookmark the permalink.

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s