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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Brumar89 who wrote (419246)	9/23/2008 2:19:49 PM
From: Road Walker	Read Replies (3) \| Respond to of 1574705

Of course, many were made in order to meet Community Reinvestment Act goals... How many?

To: Brumar89 who wrote (419246)	9/23/2008 7:40:53 PM
From: tejek	Read Replies (1) \| Respond to of 1574705

Of course, many were made in order to meet Community Reinvestment Act goals, which Clinton era regulatory changes required examiners to grade banks and thrifts on. I think you are full of horse puckey......per usual: "Conservative economists claim that the CRA encouraged risky lending[6] [7] and the development of the subprime debacle, but this is disputed, as Robert Gordon has pointed out that approximately half of the [subprime] loans were made by independent mortgage companies which were not regulated by CRA at all, and thus had no government obligation to offer credit to minorities. These companies made subprime loans at twice the rate of CRA banks. Another third of the major subprime lenders had very little CRA involvement.[8] Further, the weakening of the CRA in 2004 was followed by intensified subprime lending.[9] In favor of the idea that CRA encouraged the mortgage crisis, however, economics professor Stan Liebowitz expressed his opinion that banks were forced to loan to un-credit worthy consumers with "no verification of income or assets; little consideration of the applicant's ability to make payments; no down payment." The chief executive of Countrywide Financial, the nation's largest mortgage lender, is said to have "bragged" that to approve minority applications "lenders have had to stretch the rules a bit", suggesting that Countrywide was responsible for relaxing its standards rather than the other way around.[10]" en.wikipedia.org