From the transcript
of an interview of Gretchen Morgenson
by Juan Gonzalez
and Amy Goodman of DemocracyNow:
JUAN GONZALEZ: I want to get back to this issue of the lowering of lending standards, because one of theâ€”Iâ€™d say the first half of the book is really sort of dedicated to how this process unraveled. And you say at one point that when the Boston Fedâ€”I think it was in the `90s, early â€™90sâ€”comes up with a report showing that there had in fact been discrimination in the lending industry toward minority groups, that there wasâ€”that one of the few publications that raised issues about this report was Forbes magazine. And I think you quote some of the staff membersâ€”Peter Brimelow, who I remember in particularâ€”challenging this whole notion that there had been racial discrimination in lending practices. Now, I happen to know a little bit about Brimelow, because later on, a few years later, he wrote a book, Alien Nation, that became widely criticized because the theory was that the United States was being brought down by massive Third World immigration. So I don`t expect that Peter Brimelow would be the kind of person who would, like, stand up against racial discrimination. But the question of the impactâ€”how central was the lowering of standards by Fannie Mae and Freddie Mac in lending standards? How much was that a part of it? And how much was actual fraud by the industry, by the brokers, by the appraisers, by the Mazilos of the world, who actually engineered fraudulent loans?
I suspect Mr. Gonzalez hasn`t actually read The Hidden Clue,
by Peter Brimelow and Leslie Spencer, [Forbes, January 4, 1993]