Kasz216 on 21 August 2011
| Final-Fan said: I did not think the (paragraph 4) deregulation was specifically CRA; I thought it was general lowering of standards at Fannie Mae/Freddie Mac. Wrong? The source I saw certainly does not specify. |
I don't have time to look... but I thought the lowering of standards at Fannie/Freddie I'm pretty sure had to do with reforms in the CRA. It was either reforms in the CRA, or heavy government pressue because the CRA didn't work as well as expected.
This more or less was the impetus behind the rise in liar loans as well. A lot of people who are poorer wouldn't qualify for housing becuase often because of things like past employment history which is taken in consideration with how "stable" you are in your job.
