1. Another reason I dont want a democrat in office ~
In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.

The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.

Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.

In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates -- anywhere from three to four percentage points higher than conventional loans.

''Fannie Mae has expanded home ownership for millions of families in the 1990's by reducing down payment requirements,'' said Franklin D. Raines, Fannie Mae's chairman and chief executive officer. ''Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.''

Demographic information on these borrowers is sketchy. But at least one study indicates that 18 percent of the loans in the subprime market went to black borrowers, compared to 5 per cent of loans in the conventional loan market.

In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.

''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.''

Under Fannie Mae's pilot program, consumers who qualify can secure a mortgage with an interest rate one percentage point above that of a conventional, 30-year fixed rate mortgage of less than $240,000 -- a rate that currently averages about 7.76 per cent. If the borrower makes his or her monthly payments on time for two years, the one percentage point premium is dropped.

Fannie Mae, the nation's biggest underwriter of home mortgages, does not lend money directly to consumers. Instead, it purchases loans that banks make on what is called the secondary market. By expanding the type of loans that it will buy, Fannie Mae is hoping to spur banks to make more loans to people with less-than-stellar credit ratings.

Fannie Mae officials stress that the new mortgages will be extended to all potential borrowers who can qualify for a mortgage. But they add that the move is intended in part to increase the number of minority and low income home owners who tend to have worse credit ratings than non-Hispanic whites.

Home ownership has, in fact, exploded among minorities during the economic boom of the 1990's. The number of mortgages extended to Hispanic applicants jumped by 87.2 per cent from 1993 to 1998, according to Harvard University's Joint Center for Housing Studies. During that same period the number of African Americans who got mortgages to buy a home increased by 71.9 per cent and the number of Asian Americans by 46.3 per cent.

In contrast, the number of non-Hispanic whites who received loans for homes increased by 31.2 per cent.

Despite these gains, home ownership rates for minorities continue to lag behind non-Hispanic whites, in part because blacks and Hispanics in particular tend to have on average worse credit ratings.

In July, the Department of Housing and Urban Development proposed that by the year 2001, 50 percent of Fannie Mae's and Freddie Mac's portfolio be made up of loans to low and moderate-income borrowers. Last year, 44 percent of the loans Fannie Mae purchased were from these groups.

The change in policy also comes at the same time that HUD is investigating allegations of racial discrimination in the automated underwriting systems used by Fannie Mae and Freddie Mac to determine the credit-worthiness of credit applicants.

Posted at 12:25PM on Oct 7th 2008 by OMG

2. Tom Cruise is one sick MF!

Posted at 12:28PM on Oct 7th 2008 by psycho

3. I think people are really terrible to scream and holler like that when he is carrying what looks to be a sleeping child out of the hotel. And shame on him for standing around waving to people and smiling for the cameras when he has his little girl apparently sleeping on his shoulder. The poor child is going to grow up with real issues.

Posted at 12:32PM on Oct 7th 2008 by meanpeoplesuck

4.

Tom : Step away from the couch.

To OMG , You forgot to mention the ACORN PROJECT that OINSANA funded . Stop talking about things you have no idea. "In contrast, the number of non-Hispanic whites who received loans for homes increased by 31.2 per cent" DIDn't you mean to say , -European AMERICANS , who built this country and paid to have it built ? GO BACK.

Posted at 1:12PM on Oct 7th 2008 by Hormone Free Zone

5. Hey, I like Tom Cruise, he seems like a good husband and father. Scientology might seem odd to some, but if you think about it all religions are kind of strange.

Posted at 1:26PM on Oct 7th 2008 by Adrienne

6. is Suri sleeping or just hiding her face from the insane paps and fans? i think it's the latter.

Posted at 1:40PM on Oct 7th 2008 by DMLady

7. I'm with you psycho! To subject that poor child to that every day is just plain sick. She is scared to death.

Posted at 2:42PM on Oct 7th 2008 by Jaquey

8. DOES SURI EVER WALK ON HER OWN!?

Posted at 7:13PM on Oct 7th 2008 by mynameISunique

9. JUST WONDERING WHAT HAS TOM DONE TO TMZ PERSONALLY THAT YOU MAKE FUN OF HIM DUE TO HIS RELIGIOUS INCLINATIONS? Isn't there freedom of religion in your country (US of A)? That's why there will never be peace in your country because of all this attitude of demeaning people who unfortunately differs from your beliefs...Finding faults on others....
TMZ ...Why do you have to make up scenarios...make up stories when you don't know what is the truth? Do you even do thorough interviews? As far as I can remember from your shows...it's ambush interviews...and if the celebrity doesn't respond..you make fun of them....well maybe nobody could blame you because haven't seen any of your paparazzis act profesionally....they get paid for the best photos so they have to go to the extent of being on the celebrity's face....RIGHT? HARVEY????

Posted at 9:20PM on Oct 7th 2008 by pixiechic

10. I agree with #3- If he wants to be a publicity whore and stand there in the middle of a frenzy of people and pose for their pictures, he should at least put his sleeping child in the car before doing so. I feel so sorry for that little girl sometimes...

Posted at 6:47AM on Oct 8th 2008 by Amy

11. Ok...let talk about the Islam “Jews” since you guys go on and on about someone religious beliefs.

Posted at 9:22AM on Oct 8th 2008 by bylinda

12. Ok...let talk about the “Jews, Baptist, and Catholics” since you guys go on and on about someone religious beliefs.

Posted at 9:26AM on Oct 8th 2008 by bylinda

13. OK…The “Jews” are waiting on the chosen one to descend from space......OK… Who is Jesus?

Than… there is the “Baptist” begging for MONEY…. “I need a new car, house and/or a jet” OK

And the best for last…….the Catholics…..who worship figurines, statues, priests “who practice in pedophile” and there’s this old man who thinks he’s #3 in the holy scheme of things “Father, Son and PoPe”…Can we say Cult…

OK! So what is the deal about Scientology?

Posted at 10:05AM on Oct 8th 2008 by What a Min

14. @ADRIENNE (#5):
So, a CULT, where their foundation is the belief that aliens from the planet Xenu are our creators, not God, and are going to come to Earth, take us away in their mothership for a trip across the universe, and make us all immortal; where all of this belief came from a work of fiction (Dianetics by L. Ron Hubbard, in case you didn't know, which I'm guessing you didn't, considering your comment), that a few idiots, for whatever reasons, took so seriously that they created the CULT of Scientology out of the ridiculous ideas; where it has been proven, through sworn affidavits and other testimony to proper authorities that the Scientology CULT regularly brainwashes its members to suit their whims, and will kill off any that don't serve their purposed anymore; is merely and simply ODD?

NO.

And, someone who so strongly believes in these idiotic and ridiculous ideas is a good husband and father, especially when many who have known him, coming out of the CULT, have sworn to authorities and media that he forced Katy Holmes into marrying him through brainwashing, and that Suri was merely an instrument of one of the CULT'S "religious rites?"

NO.

You are severely ignorant of the Scientology CULT'S true nature and rhetoric, and that can be a dangerous thing. I would urge you, and anyone else who may not know, to do the research into the CULT known as Scientology, and discover why it, and it's ignorant, sometimes brainwashed, and always insane followers, need to be eradicated.

Also, DO NOT support any projects that any Hollywood Scientologist has any involvement in, including anything with Jason Lee, Leah Remini, Jenna Elfman, and John Travolta. They are all Evil by association and willingness to be part of the Cult.

Posted at 10:59AM on Oct 8th 2008 by Jeremy Bosco

15. Shame on Tom Cruise for subjecitng his daughter to all the paparazzi he just stood there smiling while liitle suri was either sleeping or just scared od the paparazzi he should of just went in the car instaed of just hanging around poor little girl

Posted at 3:06PM on Oct 8th 2008 by jennifer