"Fannie and Freddie only bought mortgages of homeowners who were likely to make their monthly payment. That kept a lot of people locked out of their dream. Some couldn’t afford a down payment. Others had lousy credit."
"But the new mortgage lenders in California wanted to change all that. They wanted a chance to offer anyone a mortgage."
"They saw their opportunity when Fannie and Freddie became entangled in an accounting scandal and lost their dominance of the mortgage markets."
"When you look at an industry that was driven by Fannie Mae and Freddie Mac for almost two decades, suddenly you don’t have the leaders of the industry even around. They are in the penalty box."
"We thought that was a huge opportunity to do some of the things we wanted to do, which is change the rules."
"All Bill Dallas needed was someone to take Fannie and Freddie’s place, someone with huge amounts of cash who would be more willing to bend the rules."
"Who took over? Wall Street."
(Source: CNBC, A House of Cards, 2009)
Glackens, Louis M. The flies got wise. 1913. photomechanical print : offeset, color. Library of Congress Prints and Photographs Division: Washington, D.C. 20540 USA. Library of Congress. USA.gov. Web. 28 Jul. 2013
Do you like this post?