Industry NewsMarkets & Economy

The big lie: Fannie and Freddie drove reckless lending

Commentary: Revisionist history of subprime could have lasting impacts
Published on Jun 3, 2011

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Poor payrolls in May, another weak Case-Shiller home-price report, and a big deceleration in manufacturing have pushed down hopes, stocks, bond yields and mortgages, now near 4.5 percent. However, the data do not support a return to recession: the ISM service-sector index actually improved to 54.6 in May from 52.8 in April.

Today's greatest frustration among mortgage people -- worse than all the new and self-defeating rules, worse than volume too low to make a living, worse than turning away good applicants -- is to watch the White House, Congress and financial "experts" of all stripes discuss mortgage-market history, and attempt reinvention.

The Soviets did a more honest job with textbooks. Creationists have a better grasp of evolution. Little kids do