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→Fannie Mae lowers guidelines for subprime borrowers: expand
:''Main article:'' [[Community Reinvestment Act]]
:''Main article:'' [[Community Reinvestment Act]]
In 1999 Fannie Mae lowered its underwriting guidelines to expand into the subprime lending market,<ref>[http://www.nytimes.com/1999/09/30/business/fannie-mae-eases-credit-to-aid-mortgage-lending.html Fannie Mae Eases Credit To Aid Mortgage Lending,] Steven A. Holmes, ''New York Times'', September 30, 1999.</ref> a widely held contributing factor to the [[Financial crisis of 2008|Financial crisis of 2007-08]].
In 1999 Fannie Mae lowered its underwriting guidelines to expand into the subprime lending market,<ref>[http://www.nytimes.com/1999/09/30/business/fannie-mae-eases-credit-to-aid-mortgage-lending.html Fannie Mae Eases Credit To Aid Mortgage Lending,] Steven A. Holmes, ''New York Times'', September 30, 1999.</ref> a widely held contributing factor to the [[Financial crisis of 2008|Financial crisis of 2007-08]].
A strategic alliance forged at the same time between Countrywide Mortgage and Fannie Mae linked the growth of the two companies. The agreement was unique – there was not a general industry practice of giving a volume discount to a mortgage originator. In 2005, the two companies agreed to work together to expand lending to low-income borrowers.<ref>[http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&ved=0CDIQFjAA&url=http%3A%2F%2Foversight.house.gov%2Fwp-content%2Fuploads%2F2012%2F07%2FCountrywide-112th-Report-7.3.12-1207-PM.pdf&ei=BAw1UdSkKKXhyQHlg4BY&usg=AFQjCNE-SVDLajjQNZyjxsZGuBXxtlqO-g&sig2=YCxVZiHOe405Ru8bRNY_gw&bvm=bv.43148975,d.aWc How Countrywide Used its VIP Loan Program To Influence Washington Policymakers,] House Committee on Oversight and Government Reform, July 5, 2012, pp. 74-76.</ref> Countrywide originated 20% of all subprime mortgages in the United States – an amount equal to 3.5% of U.S. [[GDP]]. Former [[DNC]] Chairman [[Christopher Dodd]] who headed up the Senate Banking Committee tasked with oversight of Fannie Mae and Countrywide did nothing to assess the risks to the financial system or curb the deal,
==Fraudulent accounting 1998 -2006==
==Fraudulent accounting 1998 -2006==