Pareto Rule Reverse in the Mortgage Crisis

Turn Pareto's argument that 20% of the culprits cause 80% of the problems. Fannie and Freddie are the dominant players in the U.S. mortgage market but hold only 20 percent of delinquent loans. Ultimately about 400,000 households are likely to qualify for the loan modification program, according to Priya Misra, a mortgage analyst with Barclays Capital.

By contrast, the Federal Deposit Insurance Corp. estimates that more than 4.4 million borrowers will become delinquent by the end of next year, not including loans backed by Fannie and Freddie.

Republicans claim that Fannie and Freddie caused this mess due to Democratic pressure during the height of the subprime loans 2000-06 and when Democrats were not in the majority, how come Fannie and Freddie only hold 20% of deliquent loans?

It must have been Jimmy Carter and the 1978 Community Reinvestment Act. Well, of the top 20 banks having subprime and mortgage problems none come under CRA regulations but are new banks that just originate loans and collect fees and are gone like Countrywide.

This is America, the Republican land of Opportunity and opportunists and little connivers.