Hmm.. Bush didn't cause this financial meltdown

The New York Times
By STEVEN A. HOLMES
Published: September 30, 1999
In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.
The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.
Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.
In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates -- anywhere from three to four percentage points higher than conventional loans.
''Fannie Mae has expanded home ownership for millions of families in the 1990's by reducing down payment requirements,'' said Franklin D. Raines, Fannie Mae's chairman and chief executive officer. ''Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.''
In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.
''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.''
Under Fannie Mae's pilot program, consumers who qualify can secure a mortgage with an interest rate one percentage point above that of a conventional, 30-year fixed rate mortgage of less than $240,000 -- a rate that currently averages about 7.76 per cent. If the borrower makes his or her monthly payments on time for two years, the one percentage point premium is dropped.
Fannie Mae, the nation's biggest underwriter of home mortgages, does not lend money directly to consumers. Instead, it purchases loans that banks make on what is called the secondary market. By expanding the type of loans that it will buy, Fannie Mae is hoping to spur banks to make more loans to people with less-than-stellar credit ratings.
Fannie Mae officials stress that the new mortgages will be extended to all potential borrowers who can qualify for a mortgage.
In July, the Department of Housing and Urban Development proposed that by the year 2001, 50 percent of Fannie Mae's and Freddie Mac's portfolio be made up of loans to low and moderate-income borrowers. Last year, 44 percent of the loans Fannie Mae purchased were from these groups.

The Great Apes at the Capes

OK, here's the sad truth. Little Fido, our "surf dog", faithful compadre, catnrat chaser, four legged vacuum and walking flea experiment was eaten by the shark you see. We were all surfing when the shark jumped up and ate Fido and then spit his bones out. Dan, being the biggest, jumped on the shark while Ted bit his fins, George jumped off his surfboard and did a kunk-fu kick right in the chops!! Brad poked his eyes out with a true Three-stooges move (moe would be proud) right when Eric ripped across a wave and shredded his surfboard right over the shark, cutting him to pieces. It was a sight and the first time I saw a shark cry!! Little Fido is now enshrined at the Smithsonian Museum. And you heard the truth here....so you can share this sacred story with your children when you visit. We will always remember little Fido.

Yes...there's more

Hatteras Pics

More Cape Hatteras Pictures

Outer Banks Mens Surfing Weekend

What can I say? This was probably the BEST weekend (or one of the best) I've ever spent with a bunch of a guys for just "man time". It was incredible! We had great times of fellowship, laughter, jokes, prayer, worship and surfing and fishing. The above picture is taken in the cottage we stayed in. Thankfully, our dear friend and former neighbor from Richmond, Donna, let us stay there at a super price. Muchos thanks to Donna and Dave!! Ted is teaching Brad about surfing and specifically how to apply wax to the board. Brad was very excited about some of the name brand waxes out there on the market. I think he took some home with him, too. For some reason Eric is trying to lick the wax - maybe it was the nice coconut scent that drew him or the fact that he was starving since his roomates ate all his food. :) More pictures to come too. See the next blog.
The surf posse after a day at the beach. This was on Sunday afternoon and we were packing up after a full morning of surfing. Dan had just bought some jelly for all of us and we were ready to partake of the finer things in life after a day of saltwater and sore bodies. :)

Here is the crew from left to right. Eric Feldpausch with the nice mohawk- (Virginia Indian style), Ted Meehan sporting the Wilmington mop, George (me) with the NC scrub brush dew, Dan Latshaw with the Georgia trucker mudflap and Brad Austin - the first Peachland resident to ever surf!

This picture was taken on Friday, September 19th from the Frisco Pier just south of Hatteras. This was the area we surfed on both Friday and Sunday. The view at sunset is breathtaking! This beach is by far my favorite.
THIS IS A GUEST BLOG FROM GEORGE BURTON: