How does the Community Reinvestment Act Force banks to make High-Risk 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... | |
"Also approximately 50% of the subprime loans were made by independent mortgage companies that were not regulated by the CRA."
How is the CRA at fault when half of the subprime loans were not enforced by the CRA???
This was Wall street and big banks OWN doing.
You have to have a certain percentage of your loan portfolio be within your geographic area or face fines.
What if everyone in the geographic area has bad credit like Detroit or anywhere in Ohio? Sorry if you live there. Would that not make lending more risky?
Any lending study done in 2008 no longer applies. Banks have been dumping bad loans regardless of whether they were CRA compliant for the past 4 years. Selling a loan provides a better resolution than it does to foreclose in really long foreclosure states like MI or OH. FYI. That is not good for those economies.
Also, Matthew D doesn't have the slightest clue what he is talking about.
subprime and high risk do not mean the same thing.
the VAST majority of subprime loans made during the housing bubble did not originate under the CRA.
The Right thinks redlining should be allowed that's why they're scapgoating it.
Obama sued banks in Chicago to force them to loan money to low income minorities and most of those loans were defaulted on.
So Obama is guilty of contributing to the sub prime crises and he has the gall to say that Republicans are responsible for the whole mess.
Those bankers that loaned money on houses that were only valued at half the loan value voted Republican!
