Reply #8: His background with the banking crisis in 2007 [View All]

[Ichingcarpenter]

Government bailout of subprime mortgages

See also: United States housing bubble

Following the meltdown of the subprime mortgage industry in March 2007, Schumer proposed a federal government bailout of subprime borrowers in order to save homeowners from losing their residences.<33> Others are quick to point out that such a "bailout" would primarily benefit lenders and Wall Street bankers, who make large campaign contributions to congressmen;<34> Schumer's top nine campaign contributors are all financial institutions who have contributed over $2.5 million to the senator.<35>

Schumer also proposed that the OFHEO raise Fannie Mae and Freddie Mac's conforming loan ("affordable") limits from $417,000 to $625,000, thereby allowing these GSEs to back mortgages on homes prices up to $780,000 with a 20 percent down payment.<36>

http://en.wikipedia.org/wiki/Chuck_Schumer