Dennisrn got it right
Dennisrn's Post:
In a bid to stem taxpayer losses for bad loans guaranteed by federal housing agencies Fanny Mae and Freddy Mac, Senator Bob Corker (R-Tenn.) proposed that borrowers be required to make a 5% down payment in order to qualify.
His proposal was rejected 57-42 on a party-line vote because, as Senator Chris Dodd (D-Conn) explained,
"Passage of such a requirement would restrict home ownership to only those who can afford it."
From RamRod's Reply:
For the record, Dodd and the Democrats did oppose Corker’s amendment, S.A. 3955, which would have rewritten whole sections of the Restoring American Financial Stability Act of 2010. (The 5 percent requirement was but one small part of Corker’s proposal.) Dodd said one reason he opposed the measure is that it would have disadvantaged homebuyers with good credit and income, but without the cash to make a 5 percent down payment. But Corker’s amendment also would have stripped out a requirement that mortgage packagers keep a financial interest in the mortgage securities that they sell to others — an idea Dodd said was aimed at discouraging lenders from making loans to people who can’t repay them.
Seems to me the Dennisrn had it correct, the actual quote may be incorrect, but the general idea is spot on according to RamRod's own research.
Fact is, the Dems under Frank and Dodd wanted these easy money loans and laws that forced banks to lend to unqualified borrowers. Then community organizers sued the banks to force them to make these shaky loans. This in turn helped lead to the financial crisis in 2008 which brings us to todays crappy economy.
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