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1992:Federal Housing Enterprises Financial Safety and Soundness Act of 1992 required Fannie Mae and Freddie Mac to devote a percentage of their lending to support affordable housing increasing their pooling and selling of such loans as securities; Office of Federal Housing Enterprise Oversight (OFHEO) created to oversee them.[15][16]
1994: Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 (IBBEA) repeals the interstate provisions of the Bank Holding Company Act of 1956 that regulated the actions of bank holding companies.
1995: New Community Reinvestment Act regulations break down home-loan data by neighborhood, income, and race; encourage community groups to complain to banks and regulators by allowing community groups that marketed loans to collect a brokers fee;[17] Fannie Mae allowed to receive affordable housing credit for buying subprime securities.[16]
1997: Mortgage denial rate of 29 percent for conventional home purchase loans.[18]
July: The Taxpayer Relief Act of 1997 repealed the Section 121 exclusion and section 1034 rollover rules, and replaced them with a $500,000 married/$250,000 single exclusion of capital gains on the sale of a home, available once every two years.[19] This encouraged people to buy more expensive first homes, as well as invest in second homes and investment properties.
November: Fannie Mae helped First Union Capital Markets and Bear, Stearns & Co launch the first publicly available securitization of CRA loans, issuing $384.6 million of such securities. All carried a Fannie Mae guarantee as to timely interest and principal.[20][21]
1998:
September 23, 1998: New York Fed brings together consortium of investors to bail out Long-Term Capital Management.
1998: Inflation-adjusted home price appreciation exceeds 10%/year in most West Coast metropolitan areas.[22]
October: "Financial Services Modernization Act" killed in Senate because of no restrictions on Community Reinvestment Act-related community groups written into law.[23]
1999:
September: Fannie Mae eases the credit requirements to encourage banks to extend home mortgages to individuals whose credit is not good enough to qualify for conventional loans.[24]
November: Gramm-Leach-Bliley Act "Financial Services Modernization Act" repeals Glass-Steagall Act, deregulates banking, insurance and securities into a financial services industry allow financial institutions to grow very large; limits Community Reinvestment Coverage of smaller banks and makes community groups report certain financial relationships with banks.[23]
1995–2001: Dot-com bubble.
March 10, 2000: NASDAQ Composite index peaked, Dot-com bubble collapse begins.
2000:
October: Fannie Mae committed to purchase and securitize $2 billion of Community Investment Act-eligible loans.[25][26]
November: Fannie Mae announced that the Department of Housing and Urban Development (“HUD”) would soon require it to dedicate 50% of its business to low- and moderate-income families" and its goal was to finance over $500 billion in Community Investment Act-related business by 2010.[27]
December:Commodity Futures Modernization Act of 2000 defines interest rates, currency prices, and stock indexes as "excluded commodities," allowing trade of credit-default swaps by hedge funds, investment banks or insurance companies with minimal oversight,[28] and contributing to 2008 crisis in Bear Stearns, Lehman Brothers, and AIG.[29][30][31]
[edit] 2001 - 20061997–2005:Mortgage fraud increased by 1,411 percent.[32]
2000–2003: Early 2000s recession (exact time varies by country).
2001–2005: United States housing bubble (part of the world housing bubble).
2001: US Federal Reserve lowers Federal funds rate 11 times, from 6.5% to 1.75%.[33]
2002–2003: Mortgage denial rate of 14 percent for conventional home purchase loans, half of 1997.[18]
2002: Annual home price appreciation of 10% or more in California, Florida, and most Northeastern states."Annual home-value growth at highest rate since 1980".
http://www.allbusiness.com/finance/3595974-1.html. Retrieved 2008-10-06.
June 17:President G.W. Bush sets goal of increasing minority home owners by at least 5.5 million by 2010 through billions of dollars in tax credits, subsidies and a Fannie Mae commitment of $440 billion to establish NeighborWorks America with faith based organizations.[34]
2003: Fannie Mae and Freddie Mac buy $81 billion in subprime securities.[16]
June: Federal Reserve Chair Alan Greenspan lowers federal reserve’s key interest rate to 1%, the lowest in 45 years.[35]
September: Bush administration recommended moving governmental supervision of Fannie Mae and Freddie Mac under a new agency created within the Department of the Treasury. The changes were blocked by Congress.[36]
December: President Bush signs the American Dream Downpayment Act to be implemented under the Department of Housing and Urban Development. The goal was to provide a maximum downpayment assistance grant of either $10,000 or six percent of the purchase price of the home, whichever was greater. In addition, the Bush Administration committed to reforming the homebuying process that would lower closing costs by approximately $700 per loan. It was said it would further stimulate homeownership for all Americans.[37]
2003-2007: The Federal Reserve failed to use its supervisory and regulatory authority over banks, mortgage underwriters and other lenders, who abandoned loan standards (employment history, income, down payments, credit rating, assets, property loan-to-value ratio and debt-servicing ability), emphasizing instead lender's ability to securitize and repackage subprime loans.[28]
2004:
U.S. homeownership rate peaked with an all time high of 69.2 percent.[38]
HUD ratcheted up Fannie Mae and Freddie Mac affordable-housing goals for next four years, from 50 percent to 56 percent, stating they lagged behind the private market; from 2004 to 2006, they purchased $434 billion in securities backed by subprime loans.[16]
October:SEC effectively suspends net capital rule for five firms - Goldman Sachs, Merrill Lynch, Lehman Brothers, Bear Stearns and Morgan Stanley. Freed from government imposed limits on the debt they can assume, they levered up 20, 30 and even 40 to 1.[39]
2004–2005: Arizona, California, Florida, Hawaii, and Nevada record price increases in excess of 25% per year.[citation needed]
2005: United States housing market correction ("bubble bursting").
February: The Office of Thrift Supervision implemented new rules that allowed savings and loans with over $1 billion in assets to meet their CRA obligations without investing in local communities, cutting availability of subprime loans.
September: The FDIC, Federal Reserve, and the Office of the Comptroller of the Currency allow loosening of Community Reinvestment Act requirements for "small" banks, further cutting subprime loans.[17][40]
Fall: Booming housing market halts abruptly; from the fourth quarter of 2005 to the first quarter of 2006, median prices nationwide dropped of 3.3 percent.[41]
Year-end: A total of 846,982 properties were in some stage of foreclosure in 2005.[42]
2006: Continued market slowdown. Prices are flat, home sales fall, resulting in inventory buildup. U.S. Home Construction Index is down over 40% as of mid-August 2006 compared to a year earlier. A total of 1,259,118 foreclosures were filed during the year, up 42 percent from 2005.[43]
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