While at Fannie, Raines began a program in 1999 to encourage bank loans to individuals with low incomes. He also downgraded credit requirements on loans that Fannie Mae purchased from banks. Raines claimed the program would allow borrowers who were "a notch below what our current underwriting has required" to get home loans. The move was praise by liberals because they believed it would increase the number of minority and low-income home owners. We now know the program is central to the ongoing mortgage defaults still unfolding at Fannie.
So the foreclosure crisis limps on with no end in sight.
To understand Obama's failure at financial reform, you only have to analyze his rhetoric. At the same July 21 ceremony he boldly proclaimed about the bill, "It demands accountability and responsibility from everyone." Problem is, on its face this statement is a bold faced lie. Fannie and Freddie have been neither fixed nor reformed and both are bleeding the taxpayers daily.