Final-Fan said:
Kasz216 said:
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.
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Indeed, it seems to have been lobbyism from people trying to increase CRA applicability, but you can hardly blame the CRA for that. More like the people that passed the CRA in the first place went a bridge too far.
As for liar loans, I simply don't believe you can pin that on anyone but the banks that begged people to lie to them.
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A) The CRA is what caused it to happen though. Otherwise it would of been illegal to basically do reverse redlining.
B) Even if the government is threatening to sue you and harass you if you don't find ways to loan more to poor people even though there are very specific guidlines that prevent loaning to well... people who are poor?
