Housing nominee Mel Watt helped create the subprime crisis

Charles C. Johnson
The Daily Caller
5/5/2013

Mel Watt, President Obama’s nominee for director of the Federal Housing Finance Agency, pushed government programs to help welfare recipients buy homes during the creation of the subprime mortgage bubble.

Watt, a 20-year Member of Congress from North Carolina’s 12th district, also had a hand in programs allowing borrowers with poor credit to buy homes with no down payment. The American financial system was subsequently destroyed when millions of bad borrowers defaulted on their loans, setting off a market crash that wiped out nearly 40 percent of the net worth of Americans.

In 2002, Watt teamed up with Freddie Mac and Fannie Mae, Bank of America, BB&T, and UJAMMA Inc., to announce Pathways to Homeownership, a pilot initiative designed to give home loans to welfare recipients…

…If approved to head up Federal Housing Finance Agency (FHFA), Watt will be regulating the very government agencies whose rules he negated in 2003…

Read the complete article at The Daily Caller.

 

Related: at Instapundit,  PROBLEMS WITH Obama’s NLRB Nominee.

…Griffin, the former general counsel to the International Union of Operating Engineers (IUOE) has served in a leadership role in a union that has been overrun by organized crime.  According to Fox News, “The rap sheet for members of the International Union of Operating Engineers reads like something out of ‘Goodfellas.’  Embezzlement.  Wire fraud.  Bribery.  That’s just scratching the surface of crimes committed by the IUOE ranks.”…

 

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