The Obama - Clinton Disaster Message Board

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Politics : The Obama - Clinton Disaster

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To: d[-_-]b who wrote (34879)	8/4/2010 6:42:51 AM
From: SGJ	Read Replies (1) of 103300

Barney and others claim such preferences or govt requests never existed If he really claims that, he's nuts or lying. CRA requirements, imposed by the government, are well know to all bankers. All banks are audited on CRA compliance at the very least every two years. A low CRA score can severely impact strategic planning and growth. Bottom line on it is your bank better be paying tribute to the low to moderate income people in your market area. On the other hand, the OCC audits your bank annually on asset quality. You better not have over a certain percentage of bad loans or they will put you on a Memo of Understanding that limits your ability to run your bank. So how do you reconcile the two? Subprime MBS's. Make the crappy loans to satisfy the CRA requirements, get the origination fees, sell the servicing and pool the notes into securities and sell them off to investors to get them off your books. Genius huh? when the new banking rules require an income to get a loan I haven't read the new banking rules yet, but my impression from reading articles from those who are familiar with it is they never addressed any of the CRA home lending stuff. Its still out there as far as I know.

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