Wednesday, May 20, 2009
Politicians - Barney Frank's Fannie Mae Love Connection
The Internet gives access to things the mainstream media won't cover.
Let's hope the government is never successful in restricting it...
Let's hope the government is never successful in restricting it...
At BusinessAndMedia.org, Jeff Poor writes this and more:
"“Herb Moses, who helped develop many of Fannie Mae’s affordable housing and home improvement lending programs, has left the mortgage industry,” Darryl Hicks wrote for NMN. 'Mr. Moses - whose last day was Feb. 13 - spent the past seven years at Fannie Mae, most recently as director of housing initiatives. Over the course of time, he played an instrumental role in developing the company’s Title One and 203(k) home improvement lending programs.'
Hicks explained in his story how Moses orchestrated a collaborative effort between Fannie Mae and the Department of Agriculture.
'The Dartmouth grad also played a crucial role in brokering a relationship between Fannie Mae and the Department of Agriculture,' Hicks wrote. 'This led to the creation of Fannie Mae’s rural housing program where the secondary marketing agency agreed to purchase small farm loans insured through the department.'
While Moses served at Fannie Mae and was Frank’s partner, Frank was actively working to support GSEs, according to several news outlets.
In 1991, Frank and former Rep. Joe Kennedy, D-Mass., lobbied for Fannie to soften rules on multi-family home mortgages although those dwellings showed a default rate twice that of single-family homes, according to the Nov. 22, 1991, Boston Globe.
BusinessWeek reported in its Nov. 14, 1994, issue that Fannie Mae called on Frank to exert his influence against a Housing & Urban Development proposal that would force the GSE to focus on minority and low-income buyers and police bias by lenders regardless of their location. Fannie Mae opposed HUD on the issue because it claimed doing so would 'ignore the urban middle class.'
Moses left Fannie in 1998 to start his own pottery business. National Mortgage News called Moses a 'mortgage guru' and said he developed 'many of Fannie Mae's affordable housing and home improvement lending programs. Moses ended his relationship with Frank just months after he left Fannie.'"
