Bill Clinton on the Mortgage Crisis

Bill Clinton doesn't understand the system

How is it that Bill Clinton can talk about an issue, act as though he's an authority on the subject, but have absolutely no clue what he's saying? During his term as president, HUD had their highest delinquency rates ever. Many of those loans were securitized by wall street and packaged as well. He said while consumers were advised their rates could go up, no one advised the consumer that the loans could be packaged into securities. What affect does that have on the mortgage borrower. It's a shame that brokers are attacked by people who don't understand the system. Brokers are the only group that disclose everything to the consumers. Banks do not have those same disclosure requirements. As far as I know, brokers have never designed a mortgage program, determined the amount of acceptable risk for the program, approved the borrower for the loan, funded the loan, sold it to wall street, or foreclosed on the loan. All of that is done by the greedy banks and wall street. By the way, check out the Georgetown University study that shows borrowers who obtain a mortgage through a mortgage broker actually receive a better rate than those who went directly to the banks. The difference in the rate was over 1% !!!

George H of PA @ May 09, 2008 09:29:00 AM