Doesn't negate the fact that under Clinton F and F were directed to start taking subprime mortgages that had been forced on lenders, or the fact that Bush tried to rein in F and F. And it certainly doesn't negate the fact that dems are 100% responsible for forcing lending institutions to start making loans to the uncredit worthy.The Federal Housing Department didn't begin to insure sub prime mortgages in the record amounts they were until George Bush directed Alfonso Jackson in 2003 to do so when he was head of HUD. Having HUD lower the standards on mortgages guaranteed was a recommendation of the National Association of Realtors and the Home Builders Association.
Why: Lowering the standard on sub prime loans for federal insurance would be the gateway to Bush's Ownership Society and get renters into purchasing homes to break Clinton's record for new home ownership in America.
Of course the Republicans are against oversight and regulations so the secondary market where mortgage securities are constructed and sold as investment instruments ran crazy with no federal intervention. There was even created an over the counter market where a landlord holding a mortgage could sell that mortgage into the secondary market.
Why would lending institutions start loaning money to people with bad credit, something they had never done before?
MY answer is government coercion, what's yours?