We are getting sold out. Who said that the Constitution will never fail you, but your leaders will and be wary of anyone who tries to convince you that it's the other way around. When did we as a country start heading down the prim rose path to socialism? It seems that the Emergency Economic Stabilization Act of 2008 is going to help us move down that path. The act simply believes, from each, according to his ability; to each, according to his need.
The Department of Housing and Urban Development said in 2005 that Fannie and Freddie should increase financing for low-income areas or moderate-income regions with high minority populations to 37 percent of new business from 34 percent in 2001 through 2004. That rose to 39 percent last year. Since many people wanted their own home subprime mortgages were given to people with poor credit scores. In 2006 Dan Mudd, a former CEO who left in late 2008, said in a 2006 interview that he planned to expand the companies' holdings to include more higher-risk loans. A short time later it was said that Freddie wouldn’t lose anything on about 95 percent of its uninsured subprime bonds unless more than 90 percent of borrowers already two months late are foreclosed upon and more than half of the rest default, according to slides from a company presentation in August. It seems that he was right because that was pretty much what happened.
As of August 2008 57.3% of their entire subprime loans were past due and 10.7% were in foreclosure. The former CEO of Freddie Mac had his salary last year was $900,000, although in a radio interview last month, he didn't deny reports that he raked in a total of $43 million in stock options, bonuses and overall compensation from 2005 to 2008. When Fannie Mae and Freddie Mac went into conservatorship the Government Sponsored Enterprises became the owner of 79.9% of the company. This means that the government now holds the mortgages of 55 million families at Fannie Mae and Freddie Mac holds 30 million. The U.S. government controls at least 85 million homes with more on the way as Freddie and Fannie are to manage the subprime mortgage securities.