Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Eric Blair 2084
The Clinton Administration's regulatory revisions [1] with an effective starting date of January 31, 1995

I wonder if these revisions required an act of Congress or if Clinton was solely responsible.

7 posted on 09/19/2008 7:35:13 PM PDT by what's up
[ Post Reply | Private Reply | To 1 | View Replies ]


To: what's up

To make it simple for my simple mind...

DON’T LEND MONEY TO PEOPLE WHO CAN’T AFFORD TO PAY IT BACK!
(no matter what color they are)

******

The Subprime Mortgage Mess and the Carter-Era Community Reinvestment Act of 1977
Larry Kudlow Show WABC -AM Radio | March 29, 2008 | Larry Kudlow and Steve Moore

Posted on Saturday, March 29, 2008 10:33:45 AM by Aristotelian

As a source of the current subprime mortage mess, economist Larry Kudlow and Wall Street Journal editorial board member Steve Moore point to the Carter-era Community Reinvestment Act (CRA) of 1977, which purported to prevent “redlining” — that is, the denial of mortgages to minority borrowers — by pressuring banks to make home loans in “low- and moderate-income neighborhoods.”

The two economists, speaking today on Larry Judlow’s weekly radio show, noted how the CRA was the creation of the same liberal political establishment that is now blaming banks and Wall Street for the subprime mortgage crisis.

The connection between bad loans and the CRA was noted in an earlier FreeRepublic thread: How government makes things worse Boston Globe ^ | March 9, 2008 | Jeff Jacoby http://www.freerepublic.com/focus/f-news/1982895/posts

The article stated:

The subprime mortgage collapse is another tale of unintended consequences.

The crisis has its roots in the Community Reinvestment Act of 1977, a Carter-era law that purported to prevent “redlining” - denying mortgages to black borrowers - by pressuring banks to make home loans in “low- and moderate-income neighborhoods.” Under the act, banks were to be graded on their attentiveness to the “credit needs” of “predominantly minority neighborhoods.” The higher a bank’s rating, the more likely that regulators would say yes when the bank sought to open a new branch or undertake a merger or acquisition.

http://tinyurl.com/3glf7j


10 posted on 09/19/2008 7:40:33 PM PDT by kcvl
[ Post Reply | Private Reply | To 7 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson