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And You Thought the Housing Crisis Was Over! The Community Reinvestment Act is back
The American Spectator ^ | July 27, 2012 | William Tucker

Posted on 07/27/2012 5:37:12 AM PDT by reaganaut1

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To: Almondjoy
However, the problem with your logic is that most banks comply with the CRA, where the Justice Department brings down their hammer as in the recent case with Wells Fargo was that blacks and other minorities were being charged higher fees and interest rates, even if their credit and income was close to the same.

That's because their default rates are higher, so there is less likelihood of getting the money back.

51 posted on 07/27/2012 7:33:47 PM PDT by E. Pluribus Unum (Government is the religion of the sociopath.)
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To: Almondjoy
Therefore is lending is flowing to minorities but banks are charging them more. While some racism does exist in the system, I think a majoritity of these charges show up because of a lack of knowledge by the borrowers not because of some overt racism.

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.

52 posted on 07/27/2012 9:18:22 PM PDT by Zhang Fei (Let us pray that peace be now restored to the world and that God will preserve it always.)
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To: Liz
Due to redistricting I'm losing Gary Miller as my rep and most likely will be saddled with this cretin Baca come Nov.
53 posted on 07/28/2012 9:06:03 AM PDT by DAC21
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To: Zhang Fei

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.


54 posted on 07/28/2012 10:23:02 AM PDT by Almondjoy
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To: DAC21

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.


55 posted on 07/28/2012 1:53:58 PM PDT by Liz
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To: Liz

“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.


56 posted on 07/28/2012 1:59:44 PM PDT by 1035rep
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To: bert

Thomas Sowell wrote an excellent book on the background of the housing crisis - The Housing Boom and Bust.


57 posted on 07/28/2012 2:34:21 PM PDT by 3catsanadog (Scats for Newt!)
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To: Liz

Interesting. I wonder if Cong. Baca is any relation to Sheriff Lee Baca of Los Angeles County?


58 posted on 07/28/2012 3:06:15 PM PDT by Fast Moving Angel (A moral wrong is not a civil right: No religious sanction of an irreligious act.)
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To: skeeter

“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!


59 posted on 07/28/2012 5:03:43 PM PDT by RipSawyer (Free healthcare is worth FAR LESS than it costs.)
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To: 1035rep; Liz

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.


60 posted on 07/29/2012 3:57:58 AM PDT by scrabblehack
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To: scrabblehack

Thanks for the realtime report.


61 posted on 07/29/2012 5:10:20 AM PDT by Liz
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To: All; stephenjohnbanker; Impy

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!]


62 posted on 07/30/2012 5:07:09 AM PDT by Arthur Wildfire! March (George Washington: [Government] is a dangerous servant and a terrible master.)
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To: OneWingedShark

ROFL. Great pic and comment


63 posted on 07/30/2012 9:30:22 AM PDT by khelus
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To: Arthur Wildfire! March

Good to hear from you.


64 posted on 07/30/2012 10:46:18 AM PDT by stephenjohnbanker (God, family, country, mom, apple pie, the girl next door and a Ford F250 to pull my boat.)
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Ask around. CRA never left. Nor did the ‘experts’ who work it, both in and out of gov’t. The laws never changed.


65 posted on 07/30/2012 4:14:06 PM PDT by combat_boots (The Lion of Judah cometh. Hallelujah. Gloria Patri, Filio et Spiritui Sancto.)
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To: bert
This is good news! Too many people still don't understand that the government's insistence on pushing subprime loans was at the root of the financial crisis!
66 posted on 07/31/2012 6:42:27 PM PDT by neverdem (Xin loi minh oi)
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To: bert
This is good news! Too many people still don't understand that the government's insistence on pushing subprime loans was at the root of the financial crisis!
67 posted on 07/31/2012 6:42:27 PM PDT by neverdem (Xin loi minh oi)
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To: bert
This is good news! Too many people still don't understand that the government's insistence on pushing subprime loans was at the root of the financial crisis!
68 posted on 07/31/2012 6:42:42 PM PDT by neverdem (Xin loi minh oi)
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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”.


69 posted on 07/31/2012 8:26:55 PM PDT by METARZAN
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To: Arthur Wildfire! March

Keep it real Art!


70 posted on 08/02/2012 10:06:27 AM PDT by Impy (Don't call me red.)
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To: neverdem

Thanks for the ping.


71 posted on 08/04/2012 4:00:54 PM PDT by fanfan (.http://www.ontariolandowners.ca/index.php?p=1_50_Your-Rights)
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