Fannie Mae’s Easy Mortgage Policies Not to Blame, Frank Says
Wednesday, September 24, 2008
By Josiah Ryan, Staff Writer
(CNSNews.com) - House Financial Services Chairman Barney Frank (D-N.Y.) told CNSNews.com on Tuesday that he does not place any responsibility for the current mortgage crisis on former Fannie Mae CEO Franklin Raines, who promoted policies allowing people to get mortgages with smaller down payments and with imperfect credit histories.
“No, no, no.” Frank told CNSNews.com. “I don’t think he (Raines) was in any way responsible. It was a sub-prime lending crisis. If only Freddie Mac and Fannie Mae had problems, we could say it was Franklin Raines. But he was not responsible for Indy Mac or New Century.
“I think it was just a sub-prime crisis,” Frank said.
Raines went from being the Office of Management and Budget director in the Clinton Whit
|Liveleak on Facebook|