How did the Government "Force" Banks to make risky loans?Please explain because in the "Community Reinvestment Act" it clearly states "That an institution's CRA activities should be undertaken in a safe and sound manner, and does not require institutions to make high-risk loans that may bring losses to the institution." So it wasn't... | |
if something gets repeated often enough it becomes "truth".
Lenders loosened regulations to the point where just about anybody could get a home loan. Banks were not required to do this, they saw opportunity and jumped on it. The CEO's did not have the foresight to see qualifying people with little or no ability to repay had no business getting into risky loans.
You don't provide a source for the claim that the government forced them to make risky loans. CRA does force them to make some loans they might otherwise not make (low income, etc.), but those are not as risky as some of the loans that caused the mortgage crisis.
the US and the world has been rather misled about the real estate problem.
it was a 3 way combo error--
California investors stopping cold turkey buying AZ and other states' prop
ARMS were raised illegally
oil prices have harmed the nation as much as China has harmed jobs.
Those are facts I can prove
Simple........ they didn't
Wall street and Banks got greedy
