Can you show me how that promoted a housing bubble with Federal Reserve promoted easy credit and government mandated subprime loans? Or point me in the right direction? I'd appreciate it. Thanks in advance.
“government mandated subprime loans”
It’s time to give up that nonsense. There is nothing to be gained by perpetuating it, other than it provides a convenient, albeit false, “history” of the bubble.
2/3 of the subprime loans issued during the bubble were made by non-bank lenders. By the shadow banking system. The CRA did not apply to a single one of these loans. It applied only to depository firms. And moreover the loans issued by these firms were the most exotic and creative of subprime loans, the Option ARMS, No Docs, NINJAs. These loans were issued because they made a lot of money for those who wrote them. There was no other encouragement needed.
This has all been examined in books written by people who watched the subprime market develop and who were involved in it. But then reading takes effort and no one wants to do it, especially when it is a rather dry subject to begin with. Assuming you do wish to investigate you could start with ‘Chain of Blame’ by Muolo, ‘Fools Gold’ by Tett, and ‘ECONned’ by Smith.