See here. Community Reinvestment Act
No lender was compelled to make a bad loan under CRA, borrowers were qualified for their loans using standard procedures with regard to credit worthiness and DTI. Furthermore lenders did not make CRA loans available to outside mortgage brokers or wholesalers where much of the preditory and abusive practices took place.
The simple fact is that Donald Trump could qualify for a CRA loan provided the property he was puchasing was located in an underserved location. To blame CRA lending for the credit/mortgage crisis we're facing is simplistic and misleading.
It depends on your definition of "compelled". You are correct that no bank had a gun pointed at their heads and forced to loan money to busboys making minimum wage to buy a 300K condo. They were free to disobey the edict. Of course, with the wave of bank mergers that required Gubmint approval...
It's very subtle. The left has plausible deniability. Nobody forced anyone to do anything, but it's the equivalent of waking up with a bloody horse head next to you in bed if you don't.
It should be clear that you can create all kinds of red tape to hide what you see in front of your own 2 eyes for the past 6 years(personally) but you can only fool everyone for so long. Yeah technically the wording for CRA’s make it so that they aren’t directly looked at but it’s the repercussions of legislation like this that lead to secondary results. Quit hiding behind red tape. That’s exactly the problem with the Democratic party. They lead you on a chase that takes forever for the common man to figure out.
NOW, look at ACORN. Yes, ACORN. I personally was trying to get a loan after years of struggling as a freelancer trying to prove my income,which I did, and was looking into ACORN before I knew what was going on. My loan agent told me that I couldn’t get an ACORN loan. He said “if you weren’t white and made a little less money then I could get you a loan like that”. So don’t hide behind this crap. The CRA set the standard and the rest followed by competing with these banks who were Mandated to give a certain amount of loans to the undeserving. As I have understood also, banks were given a CRA credit score?
Either way....this type of legislation IS WRONG!
Even if you try and hide behind this not being responsible for the crisis we are in. I know better though. My brand new neighborhood had many foreclosures a year later and Section 8 housing following right beside it.
Thanks a lot. Spent the last 7 years of my life working double time to get out of a bad neighborhood to end up right back in one. I’m not the only one either. I’ve talked to many parents across Arlington and Ft. Worth and it is the same there.
This falsehood that ‘we would have seen the results in Vegas’? What is this? a Jedi mind trick. Look around. It’s everywhere.