Skip to comments.And You Thought the Housing Crisis Was Over! The Community Reinvestment Act is back
Posted on 07/27/2012 5:37:12 AM PDT by reaganaut1
Do you remember that thing about how the banks wouldn't lend to blacks and Hispanics because they were racists? And do you remember how they passed the Community Reinvestment Act so that banks were forced to reduce down payments practically to zero and lend to a lot of people they knew were bad credit risks? And do you remember how Wall Street bundled all these risky subprime mortgage and sold them to investors around the world so that when it became clear that those people weren't going to be able to pay their mortgages banks everywhere were left holding the bag and all five of the Wall Street investment houses either went under or had to be bailed out by the federal government?
And do you remember how, when it was all over, liberals said it was actually the banks' fault for "deceiving" all those people into thinking they could afford to buy homes and that the banks should be punished for it and some of those people be allowed to keep their homes anyway? And do you remember how all this cost the government close to a trillion dollars and put the whole economy in a hole that we really haven't begun to dig ourselves out of yet?
Well, get ready because the whole thing is about to happen again.
I think what we are witnessing is the looting of America on behalf of minorities in a way that better end soon or we are going to bring the whole system down upon our heads.
With the current administration in power, the perception is growing among minorities that everything in the economy is rigged against them but that President Obama and his administration are going to solve everything for them.
(Excerpt) Read more at spectator.org ...
That's because their default rates are higher, so there is less likelihood of getting the money back.
I suspect it's affinity exploitation - wherein minority salespeople take advantage of the ignorance of the minority clients they serve. This kind of thing shouldn't be difficult to flag given the fact that everything is computerized these days. There'd be less of this type of discrepancy without affirmative action in hiring, since incomes would track ability, rather than today's reality, in which legally-mandated racial preferences promote favored minorities above their innate abilities at every level of employment. Nonetheless it should be possible to companies to filter for this kind of affinity exploitation. The downside is that protected minorities will also have higher default rates at every level of income, since the ability to handle money is correlated with innate intelligence, and most protected minorities make more money at a given level of IQ than their white or Asian counterparts, thanks to Federally-mandated racial preferences.
In Wells Fargo’s case they just fired their whole independent channel and decided to keep everything in house where they could better monitor pricing.
Sorry to hear it——pass along all this info-—might be able to defeat the crook.
Solomon Ortiz in Congress since 1983 had a solid Mexican-centered district...and got defeated in 2010 by Repub conservative, Blake Farenthold.
“Solomon Ortiz in Congress since 1983 had a solid Mexican-centered district...and got defeated in 2010 by Repub conservative, Blake Farenthold.”
WOW, I missed hearing about this 2010 victory. I’ll go look up the details.
Thomas Sowell wrote an excellent book on the background of the housing crisis - The Housing Boom and Bust.
Interesting. I wonder if Cong. Baca is any relation to Sheriff Lee Baca of Los Angeles County?
“Obama is leaving this country with two alternatives - economic collapse or race war.”
Alternatives? It looks to me as though he intends us to have both!
California has a “jungle primary” now...Democrats finished 1-2 in Baca’s district. Baca may lose (he was #2), but it won’t be to a Repub conservative.
Thanks for the realtime report.
God bless you guys! Keeping up on the latest important news I see.
[If I were two people, both of me would be tempted to spend all my time here. So ... I’m not really back yet. But bless you all!]
ROFL. Great pic and comment
Good to hear from you.
Ask around. CRA never left. Nor did the ‘experts’ who work it, both in and out of gov’t. The laws never changed.
If it means anything my house sold this time last year. Sold for $170K in a really bad market, down maybe 20% from what we expected. The house was sold to a so-called “minority” and only with her signature (only one on loan) with no money down and she had a family income of roughly $45K per year.
I was a bit set-back as we had just experienced one of the largest bubbles ever in housing due to this issue, set back that we were only a year or so removed from the crash and for all practical purposes it was “business as usual”.
Keep it real Art!
Thanks for the ping.
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