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  • Top Clinton Aides Blew a Chance to Avert the Financial Crisis

    05/02/2014 6:47:48 AM PDT · by Oldeconomybuyer · 7 replies
    Business Week / Bloomberg | May 1, 2014 | By Peter Coy and Silla Brush
    LINK ONLY PER POSTING RULE? http://www.businessweek.com/articles/2014-05-01/clinton-officials-missed-chance-to-avert-2008-financial-crisis?google_editors_picks=true
  • Clinton Library's Doc Dump Reveals CRA Fueled Subprime Bubble

    04/26/2014 5:21:06 PM PDT · by neverdem · 55 replies
    Investor's Business Daily ^ | April 25, 2014 | Masthead Editorial
    Subprime Scandal: Newly released memos from the Clinton presidential library reveal evidence the government had a big hand in the housing crisis. The worst actors were in the White House, not on Wall Street. During the 1990s, former Clinton aides bragged that more aggressive enforcement of the Community Reinvestment Act pressured banks to issue riskier mortgages, lending more proof the anti-redlining law fueled the crisis. A 2012 National Bureau of Economic Research study found "that adherence to that act led to riskier lending by banks," with "a clear pattern of increased defaults for loans made by these banks in quarters...
  • U of M study sees signs of mortgage redlining in Twin Cities

    04/11/2014 7:19:24 AM PDT · by TurboZamboni · 24 replies
    MPLS Star & SIckle ^ | 4-9-14 | JENNIFER BJORHUS
    Minority residents in the Twin Cities are much more likely than white people of similar incomes to be rejected for a mortgage, whether they’re buying a home or refinancing. If the home sits in a diverse or mainly nonwhite neighborhood, the application is also more likely to get the boot. Those are the findings of a new study from the University of Minnesota Law School suggesting that mortgage redlining remains alive and well in the Twin Cities. The report suggests that while banks may have justifiably tightened up credit standards, they have swung so far that they are cutting off...
  • The Financial Crisis: Why Have No High-Level Executives Been Prosecuted?

    01/09/2014 8:35:15 PM PST · by Brad from Tennessee · 61 replies
    New York Review of Books ^ | January 9, 2013 | By Jed S. Rakoff
    Five years have passed since the onset of what is sometimes called the Great Recession. While the economy has slowly improved, there are still millions of Americans leading lives of quiet desperation: without jobs, without resources, without hope. Who was to blame? Was it simply a result of negligence, of the kind of inordinate risk-taking commonly called a “bubble,” of an imprudent but innocent failure to maintain adequate reserves for a rainy day? Or was it the result, at least in part, of fraudulent practices, of dubious mortgages portrayed as sound risks and packaged into ever more esoteric financial instruments,...
  • Here's How The Community Reinvestment Act Led To The Housing Bubble's Lax Lending

    11/06/2013 5:03:00 PM PST · by Titus-Maximus · 16 replies
    Business Insider ^ | 6.27.09 | John Carney
    Finance More: Economy Wall Street Banks Earnings Here's How The Community Reinvestment Act Led To The Housing Bubble's Lax Lending John Carney Jun. 27, 2009, 9:33 AM 103,381 53 Earlier this week I noted that I had changed my mind on the Community Reinvestment Act. Contrary to my initial conclusion, the evidence is overwhelming that the CRA played a significant role in creating lax lending standards that fueled the housing bubble. Once I realized this, I had to abandon my suspicion that the anti-CRA case was a figment of the rhetoric of Republicans attempting to distract attention from their own...
  • Insight: Yellen Feared Housing Bust But Did Not Raise Public Alarm

    11/02/2013 8:20:16 AM PDT · by Son House · 4 replies
    Reyters ^ | Oct 30, 2013 | Marilyn W. Thompson, Ann Saphir and Alister Bull
    In 2004, the new president told risk managers in San Francisco that closer supervision had "made our financial system far more resilient to shocks." In Phoenix that year, she reported "more positive signs in the economy." She flagged real estate as a concern in March 2005, telling a banking group in Hawaii that her staff was examining commercial lending and was concerned about the "easing of credit standards and terms on loans" for home mortgages. But Yellen ended optimistically, concluding that "we don't think widespread problems are likely" and that "industry conditions in many respects are stronger now than they've...
  • Dueling Punch Bowls: Gov’t Mortgage Guarantees And The Fed Stimulus (Holder Declares War!)

    08/21/2013 11:07:16 AM PDT · by whitedog57 · 2 replies
    Confounded Interest ^ | 08/21/2013 | Anthony B. Sanders
    As President Obama and Congress discuss housing finance reform, we have to discuss the government mortgage guarantee. You know, the one that Fannie Mae and Freddie Mac furiously denied, but it turned out that they were wrong. Since 2008, Fannie Mae, Freddie Mac and the FHA control over 90% of the mortgage market and The Fed has taken unprecedented measures to keep mortgage rates low. Finally, investors are flocking into housing again. Part of the allure is the government mortgage guarantee. Government loves guarantees (and pseudo-guarantees) in the form of social safety nets. Social security, Medicare and other entitlements (that...
  • Those who don’t learn from history are bound to repeat it… Obama pushes sub-prime mortgages… again!

    04/09/2013 10:03:10 AM PDT · by Starman417 · 9 replies
    Flopping Aces ^ | 04-09-13 | Vince
    There’s something macabre about an imminent train wreck, you know exactly what is coming but you can’t help but watching. Now imagine that instead of watching that train wreck from atop a building a safe distance away, you’re standing right between the train and the tanker truck that has stalled on the tracks. That’s a different story all together. At that point, rather than being a mere fascination it’s a matter of life or death. You’ve seen the damage a train wreck can do. That’s why it was fascinating in the first place. The difference now of courses is that...
  • Conservative Justices Doubt Ongoing Validity Of 1965 Voting Rights Act

    02/27/2013 3:59:58 PM PST · by algernon_garnock · 14 replies
    National Public Radio ^ | 02-27-2013 | Nina Totenberg
    It was a historic moment at the U.S. Supreme Court on Wednesday as the justices heard a challenge to the 1965 Voting Rights Act. The landmark law spurred exponential growth in minority voting and is credited with getting many more minorities elected to office. But opponents say its time has passed, and the court's five conservative justices voiced strong doubts about the law's ongoing validity.
  • CNBC's Bartiromo Takes (Barney) Frank to Task Over Lack of ’08 Financial Crisis Prosecutions

    02/16/2013 8:27:39 AM PST · by DogByte6RER · 21 replies
    Washington Free Beacon ^ | February 15, 2013 | Washington Free Beacon Staff
    Bartiromo Takes Frank to Task Over Lack of ’08 Financial Crisis Prosecutions • Frank: 'Individuals' should be prosecuted on Wall Street, will not say who Former Massachusetts Congressman Barney Frank (D., Mass.) advocated criminal prosecutions against “individuals” involved in the 2008 financial crisis and the subsequent collapse on Wall Street Friday on CNBC. Maria Bartiromo reacted incredulously to Frank’s refusal to name specific individuals who may have perpetrated criminal wrongdoing, accusing the former Congressman of playing populist politics by making specious allegations against the financial industry. Frank attempted to deflect the criticism by stating as Chair of House Financial Services...
  • CFPB Reduces Consumer Choice by Banning Mortgage Features (“Thou Shall Not ..”)

    01/10/2013 2:48:30 PM PST · by whitedog57 · 8 replies
    Confounded Interest ^ | 01/10/2013 | Anthony B. Sanders
    The Consumer Financial Protection Bureau (CFPB), built by Senator Elizabeth Warren (D-MA) and run by “Robo Cop” Richard Cordray (the former Attorney General of Ohio), has issued its new list of mortgage feature bans for the “qualified mortgage.” Kerri Ann Panchuk from Housing Wire has a nice summary in her article. 201301_cfpb_ability-to-repay-factsheet Here are the features of Qualified Mortgages and what is banned: • No excess upfront points and fees • No toxic loan features o No interest-only loans, o No loans where the principal amount increases, such as a negative-amortization loan; and o No loans where the term is...
  • Democrats Fully to Blame for Subprime Mortgage Crisis that Caused 2008 Financial Disaster

    12/22/2012 2:54:00 PM PST · by george76 · 46 replies
    Gateway ^ | December 22, 2012 | Jim Hoft
    In his early activist days, Barack Obama the community organizer sued banks to ease lending practices... During his time as a community organizer Barack Obama led several protests against banks to make loans to high risk individuals. ... A new study by the respected National Bureau of Economic Research found that Democrats are to blame for the subprime mortgage crisis. ... Republicans warned Democrats of the impending doom in 2004.
  • new study confirms democrats crashed the economy DUH...

    12/21/2012 8:24:03 AM PST · by raygunfan · 20 replies
    The Examiner ^ | 12/21/2012 | ROBERT MOON
    A new study from the widely respected National Bureau of Economic Research released this week has confirmed beyond question that the left's race-baiting attacks on the housing market (the Community Reinvestment Act
  • Subprime Bubble: Obama 'Vampire Socialism' Built It

    09/04/2012 5:22:00 PM PDT · by raptor22 · 14 replies
    IBD EDITORIALS ^ | September 4, 2012
    Housing Crisis: Previously unpublished court documents reveal that as a young lawyer from Chicago, President Obama's lawsuit against big banks started inflating the housing bubble that created the mess he says he inherited. We have often written that the true roots of our current economic crisis lay in the excesses of the 1977 Community Reinvestment Act as redefined under the Clinton administration. We have explained how community outreach by banks, under pressure from groups such as Acorn, was transformed into the mandatory credit issuance based not of creditworthiness, but on the basis of "fairness." "Redlining," the activists argued, was the...
  • And You Thought the Housing Crisis Was Over! The Community Reinvestment Act is back

    07/27/2012 5:37:12 AM PDT · by reaganaut1 · 70 replies
    The American Spectator ^ | July 27, 2012 | William Tucker
    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...
  • Like Father Like Son, George and Mitt Romney

    04/24/2012 6:07:32 PM PDT · by Dajjal · 11 replies
    RightPundits ^ | Feb. 12, 2012 | Andrew Zarowny
    After edging out Rockefeller 51% to 49% in the winner-take-all race in California, Goldwater had a huge majority of delegates, enough to easily win the nomination at the Republican convention. George Romney set about denouncing Goldwater, and even raised a stink at the convention to have Goldwater′s delegates disqualified. Romney was accusing many of Goldwater′s delegates as being everything from racists, members of the Ku-Klux-Klan, the John Birch Society and even accused some of being Communists! Imagine that! Once Goldwater was named the presidential nominee, George Romney still worked to undermine his campaign, refusing to endorse or support him. So...
  • The Big Flaws in Dodd-Frank

    04/14/2012 10:44:32 AM PDT · by reaganaut1 · 3 replies
    Barron's ^ | April 14, 2012 | Gene Epstein interviewing Charles Calomiris
    You mention toxic mortgages. How does Dodd-Frank address that problem?Not at all. There is no attempt in Dodd-Frank to address the key problem of government subsidization of mortgage risk, and the exposures of Fannie Mae [FNMA], Freddie Mac [FMCC], and the Federal Housing Administration are still growing. How do you explain the omission?There is a powerful political interest that wants real-estate lending to be sponsored by the government. Starting about 1830, an important influence on the politics of banking came from farming interests, which increasingly promoted bank exposure to farm real-estate risk. What has changed since World War II is...
  • The Congressional Review Act (CRA) allows Congress to overturn outrageous regulations

    03/13/2012 4:09:46 PM PDT · by Iam1ru1-2 · 4 replies
    Right To Work Committee - Email | Mark Mix
    Dear Concerned American: The Obama bureaucracy is out of control, and I need your help to stop it. The Congressional Review Act (CRA) allows Congress to overturn outrageous regulations like the bureaucratic power grabs rammed through the Obama Labor Board. S.J. Res. 36 is a Joint Resolution of Disapproval that would prevent implementation of the NLRB's "ambush" election rules. You see, this proposal would diminish employees' ability to make a fully informed decision by reducing time in which the process occurs from the current average of 38 days to as little as one week. Worse, allowing the new rules will...
  • GOP Candidates School Media On Crisis Origins

    12/29/2011 6:09:29 PM PST · by Kaslin · 2 replies
    IBD Editorial ^ | December 29, 2011 | Editor
    Journalism: Bloomberg News has published a piece designed to shame GOP White House hopefuls for fingering government housing policy in the crisis. But it's Bloomberg that needs schooling. Its lengthy article scoffs at top Republican candidates Mitt Romney and Newt Gingrich for laying much of the blame on federal regulations. It argues their view "has been rejected" by the Washington punditry, as well as the Democrat-appointed "commission that investigated the meltdown." While true, the prevailing wisdom is dead wrong. And the business wire not only parroted this false Democrat narrative, but conveniently omitted key facts. Take Bloomberg's analysis of the...
  • Smoking-Gun Document Ties Policy To Housing Crisis

    10/31/2011 7:09:45 AM PDT · by Slyscribe · 38 replies · 1+ views
    Investor's Business Daily ^ | 10/31/2011 | Paul Sperry
    President Obama says the Occupy Wall Street protests show a "broad-based frustration" among Americans with the financial sector, which continues to kick against regulatory reforms three years after the financial crisis. "You're seeing some of the same folks who acted irresponsibly trying to fight efforts to crack down on the abusive practices that got us into this in the first place," he complained earlier this month. But what if government encouraged, even invented, those "abusive practices"?
  • Jimmy Carter, Bill Clinton, Janet Reno to blame for mortgage mess

    10/24/2011 7:57:42 AM PDT · by SmileRight · 25 replies
    BIZPACReview.com ^ | 10/21/2011 | John R. Smith
    Historians know that they can never claim wars start with a clash of armies. They know that the root causes of war start long before. In the same way that the seeds of war germinate well in advance of battle action, so too did the causes of this country’s mortgage meltdown, housing collapse, and credit crisis. Champions of Big-Brother-Government want you to blame everyone else except government intrusion for the economic plagues that currently assail us. But there’s no getting around the truth. In the 1990s and 2000s, activist leftist groups like ACORN, AFL-CIO, and NEA conspired with liberal politicians...
  • Occupy protestors should storm Capitol Hill, not Wall Street

    10/20/2011 6:59:22 AM PDT · by SmileRight · 5 replies
    BizPacReview.com ^ | October 20, 2011 | John R. Smith
    I guess every few years, civilized society has to put up with some new crop of ignoramuses who want to tear things down and rant against things they do not comprehend. No matter what the “Occupy Wall Street” lost-souls think, for those readers who really want the truth, this column’s for you. It is the first in a series. It’s the American way for people to stand on street corners with placards or bullhorns. But with the current bunch, the real question for mainstream Americans is whether the cries of the protestors are based on facts or contrived fiction. We’ll...
  • Barney Frank: The Community Reinvestment Act Was a ‘Republican Failure’

    10/12/2011 10:59:56 PM PDT · by neverdem · 58 replies
    NATIONAL REVIEW ONLINE ^ | October 12, 2011 | Jim Geraghty
    In today’s Wall Street Journal: Asked who was to blame for the 2008 financial crisis and whether any bankers should have been prosecuted, Mrs. Bachmann and former House Speaker Newt Gingrich put the onus on the federal government, with Mr. Gingrich suggesting that former Senate Banking Chairman Chris Dodd and Rep. Barney Frank, former chairman of the House Financial Services Committee, should both be jailed.“It was the federal government that pushed the subprime loans . . . that pushed the community reinvestment act,” said Mrs. Bachmann, citing what she considered the causes of the housing meltdown.Mr. Frank released an emailed...
  • ACORN Secretly Wrote 1992 Law That Set Fannie, Freddie 'On the Road to the Mortgage Meltdown'

    09/06/2011 6:12:34 AM PDT · by WashingtonSource · 30 replies
    MInd Over Market ^ | August 21, 2011 | Robert England
    The Association of Community Organizations for Reform Now (ACORN) was a key architect of a law passed in 1992 that set Fannie Mae and Freddie Mac on the road to ruin, according to a new book by Robert Stowe England to be released September 30 by Praeger. The book, Black Box Casino, uncovers the myriad factors that led to the financial crisis of 2008, the worst financial implosion of modern times. This story is one of many threads woven into the book's narrative. ACORN was a key leader in clandestine negotiations among housing activists to shape new legislation that would...
  • Eric Holder's Newest Witch Hunt

    07/31/2011 7:17:16 AM PDT · by Kaslin · 45 replies
    Townhall.com ^ | July 311, 2011 | Bob Beauprez
    The Department of Justice is executing a "Witch Hunt" against banks. Through the DOJ's Civil Rights Division, Attorney General Eric Holder is forcing banks to "relax their mortgage underwriting standards and approve loans for minorities with poor credit as part of a new crackdown on alleged discrimination," according to a published report by Investor's Business Daily after reviewing court documents. The DOJ has already extorted $20 million for weak and poor credit loans from banks that "settled out of court rather than battle the federal government and risk being branded racist." The DOJ admits another 60 banks are already under...
  • Holder Launches Witch Hunt Against Biased Banks

    07/09/2011 7:11:24 AM PDT · by TimSkalaBim · 69 replies
    Investor's Business Daily ^ | 7/8/2011 | Paul Sperry
    In what could be a repeat of the easy-lending cycle that led to the housing crisis, the Justice Department has asked several banks to relax their mortgage underwriting standards and approve loans for minorities with poor credit as part of a new crackdown on alleged discrimination, according to court documents reviewed by IBD. [snip] Another Reno protege, Perez has compared bankers to Klansmen. Only difference is, he said, bankers discriminate "with a smile" and "fine print." He said this kind of racism, though more subtle, is "every bit as destructive as the cross burned in a neighborhood." Perez has put...
  • A Renewed Crackdown on Redlining,in the wake of the subprime implosion

    05/11/2011 12:04:38 PM PDT · by NoLibZone · 14 replies
    businessweek ^ | May 5 2011 | By Clea Benson
    Community activists in St. Louis became concerned a couple of years ago that local banks weren't offering credit to the city's poor and African American residents. So they formed a group called the St. Louis Equal Housing and Community Reinvestment Alliance and began writing complaint letters to federal regulators. Apparently, someone in Washington took notice. The Federal Reserve has cited one of the group's targets, Midwest BankCentre, a small bank that has been operating in St. Louis's predominantly white, middle-class suburbs for over a century, for failing to issue home mortgages or open branches in disadvantaged areas. Although executives at...
  • Community Reinvestment Act: Separating Fact From Fiction (Long Article)

    03/29/2011 5:31:52 PM PDT · by Kaslin · 21 replies
    IBD Editorials ^ | March 29, 2011 | Staff
    Cover-Up: Acorn clones using the Community Reinvestment Act to shake down banks aren't happy with our campaign to expose the truth about the CRA's central role in the financial crisis. The Greenlining Institute is typical. The Berkeley, Calif.-based community organizer fired off a letter to us complaining about our March 21 editorial "WaMu: Guilty Only Of CRA Compliance." In it, we argued that Washington Mutual, a CRA poster boy in the run-up to the crisis, is now a convenient whipping boy for the same regulators who pressured the bank into making the "reckless" multicultural loans they're suing it over today....
  • Financial Crisis Was Avoidable, Inquiry Finds

    01/26/2011 5:40:39 AM PST · by La Lydia · 23 replies
    New York Times ^ | January 26, 2010 | Sewell Chan
    WASHINGTON — The 2008 financial crisis was an “avoidable” disaster caused by widespread failures in government regulation, corporate mismanagement and heedless risk-taking by Wall Street, according to the conclusions of a federal inquiry. The commission that investigated the crisis casts a wide net of blame, faulting two administrations, the Federal Reserve and other regulators for permitting a calamitous concoction: shoddy mortgage lending, the excessive packaging and sale of loans to investors and risky bets on securities backed by the loans... While the panel, the Financial Crisis Inquiry Commission, accuses several financial institutions of greed, ineptitude or both, some of its...
  • Ann Coulter: INVESTIGATE THIS! [financial crisis, Democrat hacks running Fannie Mae and Freddie Mac]

    01/05/2011 10:04:44 PM PST · by RonDog · 25 replies
    www.anncoulter.com ^ | January 5, 2011 | Ann Coulter
    INVESTIGATE THIS!by Ann CoulterJanuary 5, 2011The Republicans are back in charge in the House of Representatives this week, and not a moment too soon! Forget "stimulus" bills and "shovel-ready" bailouts (for public school teachers, who need shovels for what they're teaching), the current financial crisis, which is the second Great Depression, was created slowly and methodically by Democrat hacks running Fannie Mae and Freddie Mac over the past 18 years. As even Obama's treasury secretary admitted in congressional hearings, "Fannie and Freddie were a core part of what went wrong in our system." And if it's something Tim Geithner...
  • A Primer on the 2007-2009 Financial Mess

    01/03/2011 11:38:24 AM PST · by Starman417 · 4 replies
    Flopping Aces ^ | 01-03-10 | Gary Kukis
    1.    Politicians had policies which supported bad lending practices.  They believed that not enough loans were being made to minority groups, so they expanded the power and scope of the Community Reinvestment Act, which was designed to get more minorities to buy homes. 2.    There was the problem of minority incomes not being high enough and their credit not being good enough to get home loans. 3.    FNMA and FHLMC are quasi-government institutions (now, fully government institutions) which make the rules for buying mortgages, as mortgage companies do not hold their mortgages; they sell them on the secondary mortgage...
  • Don't Blame Poor And Do See 'Inside Job'

    12/06/2010 5:30:01 PM PST · by Kaslin · 10 replies
    IBD Editorials ^ | December 6, 2010 | ORSON AGUILAR
    It has been fascinating to observe the reactions of anti-regulation zealots to the film "Inside Job." Many — including Paul Sperry in his Nov. 18 column on this page, "10 Reasons You Should Not Waste Your Money On Film 'Inside Job,'" — have resorted to constructing a sort of alternate economic history of the past 20 years. In this alternate history, the culprit behind the subprime mortgage meltdown and ensuing economic crisis wasn't deregulated investment banks or speculators taking absurd risks. Instead, it was the poor, aided and abetted by advocates like us at the Greenlining Institute who worked to...
  • The super-villain of subprime unmasked! (and it's not Angelo Mozilo)

    11/16/2010 10:57:07 AM PST · by Riflema · 6 replies
    Yahoo/AP ^ | 11-16-10 | Peter Gorenstein
    As detailed in this previous clip, co-authors Bethany McLean and Joe Nocera say there's plenty of blame to go around, from Alan Greenspan .....
  • Remember the LONG-TERM Causes of the Financial Sector Meltdown (an email pre-formatted for sending)

    10/23/2010 12:49:32 PM PDT · by FreeKeys · 38 replies
    FreedomKeys.com ^ | 20101010 | various
    Would the Last Honest Reporter Please Turn On the Lights?by novelist Orson Scott Card, a Democrat_________..      This [financial crisis] was completely foreseeable and in fact many people did foresee it.  One political party, in Congress and in the executive branch, tried repeatedly to tighten up the rules.  The other party blocked every such attempt and tried to loosen them...Furthermore, Freddie Mac and Fannie Mae were making political contributions to the very members of Congress who were allowing them to make irresponsible loans.  (Though why quasi-federal agencies were allowed to do so baffles me.  It's as if the Pentagon were...
  • Were Obama's own mortgage documents signed by a 'robo-signer'?

    10/11/2010 3:33:42 PM PDT · by Nachum · 22 replies
    WaPo ^ | 10/11/10 | Ariana Eunjung Cha
    A consumer advocacy Web site has obtained some mortgage paperwork for President Obama and first lady Michelle Obama's home in Chicago. The documents, which show that the couple's mortgage of $210,000 was fully paid on May 10, 2005, are signed by a Chase Home Finance vice president Marshe Craine. The interesting thing about the documents is that Craine's signature on court documents related to other people's homes looks radically different from the version on the Obamas' paperwork. In other, unrelated cases, attorneys for homeowners have accused loan processing companies of allowing employees to forge other people's signatures.
  • The American Dream of Home Ownership Has Become a Nightmare

    09/23/2010 9:46:19 AM PDT · by Kaslin · 69 replies
    US News ^ | September 23, 2010 | Mortimer B. Zuckerman
    The disappearance of home equity value is a lead weight on the recovery Why has housing been such a core element in the story of American civilization?Culturally a decent house has been a symbol of middle-class family life. Practically, it has been a secure shelter for the children, along with access to a good free education. Financially it has been regarded as a safe store of value, a shield against the vagaries of the economy, and a long-term retirement asset. Indeed, for decades, a house has been the largest asset on the balance sheet of the average American family. In...
  • Over at the Washington Post, in the comments section, "Brad" sums it up nicely

    "Brad" commnets: Below is a brief history of why the housing bubble burst. » 1977: Democrat Jimmy Carter signs the Community Reinvestment Act, guaranteeing home loans to low-income families. » 1999: Democrat Bill Clinton puts the CRA on steroids by pushing Fannie Mae and Freddie Mac to increase the number of subprime loans. » September 1999: The New York Times publishes an article headlined "Fannie Mae Eases Credit to Aid Mortgage Lending," which warned of the coming crisis due to lax lending policies of the Clinton administration. » 2003: The White House calls Fannie and Freddie a "systemic risk" and...
  • The Trillion-Dollar Bank Shakedown That Bodes Ill for Cities [CRA 2000 article]

    08/08/2010 5:15:10 PM PDT · by Lorianne · 9 replies
    City Journal ^ | Winter 2000 | Howard Husock
    The Clinton administration has turned the Community Reinvestment Act, a once-obscure and lightly enforced banking regulation law, into one of the most powerful mandates shaping American cities—and, as Senate Banking Committee chairman Phil Gramm memorably put it, a vast extortion scheme against the nation's banks. Under its provisions, U.S. banks have committed nearly $1 trillion for inner-city and low-income mortgages and real estate development projects, most of it funneled through a nationwide network of left-wing community groups, intent, in some cases, on teaching their low-income clients that the financial system is their enemy and, implicitly, that government, rather than their...
  • 'Reform' missed 'friends of Angelo'

    07/27/2010 2:35:29 AM PDT · by Scanian · 4 replies · 1+ views
    NY Post ^ | July 27, 2010 | STEPHEN B. MEISTER
    Democrats claim their sweeping financial-sector reforms will guard against the kind of problems that triggered the recent economic meltdown. But if they really wanted to do that, they would've focused on how so many US officials were simply . . . bought. Fat chance. Nonetheless, Rep. Darrell Issa (R-Calif.), ranking member of the House Committee on Oversight and Governmental Reform, is demanding just such a review -- and, for the sake of the nation, he should get one. Last week, Issa wrote to Alfred Pollard, general counsel to the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac,...
  • House Passes Financial Services Bill; Mandates Racial Favoritism

    07/02/2010 4:49:31 PM PDT · by jazusamo · 11 replies
    National Legal & Policy Center ^ | July 2, 2010 | Carl Horowitz
      Supporters call it "financial services reform." Yet one has to wonder what the Restoring American Financial Stability Act of 2010 is reforming or stabilizing. The House on Wednesday by a 237-192 margin passed the 2,300-plus-page conference bill designed to protect American households from predatory practices by banks, subprime lenders, brokerage houses and other intermediaries. But evidence suggests that if it becomes law, the bill instead will lay the groundwork for another major federal bailout. During House-Senate conference sessions, affirmative action zealots inserted a host of mandates to promote credit allocation by race. Sen. Christopher Dodd, D-Conn., and Rep. Barney Frank,...
  • Why Canada's Housing Market Didn't Crash

    06/30/2010 11:55:18 AM PDT · by Nachum · 24 replies
    cnbc.com ^ | 6/30/10 | Diana Olick
    They saw a housing boom, they saw a recession, and yet the Canadian housing market is still cooking with gas. Why? Fundamental differences in Canadian banking, borrowing and home buying. I spent the day in Toronto a few weeks ago and was really interested to see how a few miles can span such a huge difference in collective attitude.
  • Fannie-Freddie Bailout Could Cost Taxpayers $1 Trillion

    06/29/2010 9:31:15 AM PDT · by NormsRevenge · 27 replies
    CNBC ^ | 6/29/10 | Steve Liesman
    For American taxpayers, now on the hook for some $145 billion in housing losses connected to Fannie Mae and Freddie Mac loans, that amount could be just the tip of the iceberg. According to the Congressional Budget Office, the losses could balloon to $400 billion. And if housing prices fall further, some experts caution, the cost to the taxpayer could hit as much as $1 trillion. Two things are clear: Taxpayers don’t want to foot the bill, and Fannie and Freddie, taken over by the government in 2008 to stanch the financial bloodletting, need a major overhaul.
  • Krugman: Reagan Did It(financial mess) [[Barf]]

    05/31/2009 11:41:16 PM PDT · by libh8er · 42 replies · 1,717+ views
    NY Times ^ | 06.01.09 | Paul Krugman
    ...There’s plenty of blame to go around these days. But the prime villains behind the mess we’re in were Reagan and his circle of advisers — men who forgot the lessons of America’s last great financial crisis, and condemned the rest of us to repeat it... -------------- ...But there was also a longer-term effect. Reagan-era legislative changes essentially ended New Deal restrictions on mortgage lending — restrictions that, in particular, limited the ability of families to buy homes without putting a significant amount of money down. These restrictions were put in place in the 1930s by political leaders who had...
  • NCRC Documents Trillions of CRA Dollars in Communities since 1977; CRA Commitments: 1977-2005

    05/16/2010 7:08:16 AM PDT · by Johnny_Longtorso · 8 replies · 438+ views
    NCRC ^ | September 19, 2005 | NCRC
    In this report on Community Reinvestment Act (CRA) agreements, the National Community Reinvestment Coalition (NCRC) finds that $4.2 trillion dollars have been infused into minority and lower income neighborhoods since CRA passed in 1977. Banks have committed to 430 CRA agreements, instituting multi-year programs covering loans, investments and banking services to communities in need....
  • The Cause of the 2008 Mortgage Crash

    05/01/2010 9:15:09 AM PDT · by Johnny_Longtorso · 17 replies · 535+ views
    Limited modified Hangout ^ | 2/6/2010 | Johnny Longtorso
    ...In early 2005, largely at the behest of the banking sector, the Office of Thrift Supervision implemented new rules that were widely perceived as weakening the CRA. Supervision of banks with under $1 billion in assets was loosened, and larger banks were allowed to voluntarily reduce the amount of regulator scrutiny of their "investment" and "service"-two long-standing categories of assessment under the CRA. This had two unintended consequences that would later prove to be very costly. In the first place, it increased CRA scrutiny of larger banks, who were now the main focus of regulators. This put even more pressure...
  • I Don't Want Barack Obama at Nite (or his party anyday)

    04/24/2010 8:48:40 AM PDT · by DC - Host of CRA Radio · 9 replies · 284+ views
  • DeVore Wins CRA Endorsement!

    03/07/2010 6:39:52 PM PST · by Bhoy · 14 replies · 177+ views
    Email notice | 3/7/10 | DeVore Campaign
    FOR IMMEDIATE RELEASE -- DeVore for California today welcomed the overwhelming, first-ballot endorsement of Chuck DeVore by the California Republican Assembly's 75th annual convention. DeVore's endorsement, by a margin of 194 votes to 89 for distant-second Carly Fiorina, was the first by a statewide Republican organization in the California U.S. Senate race. The CRA endorsement of Chuck DeVore was the more remarkable for the tremendous effort the Fiorina campaign put into blocking it. With a 2/3 majority required for an endorsement, that campaign needed to secure the support of only a small minority of delegates. To that end: Carly Fiorina...
  • The Subprime Cover-Up

    03/03/2010 5:07:56 PM PST · by Kaslin · 22 replies · 570+ views
    Investors.com ^ | March 3, 2010 | INVESTMENT BUSINESS DAILY Staff
    Financial Crisis: As Congress crafts new banking rules to beef up the Community Reinvestment Act, the panel it picked to probe the subprime mess is discounting CRA's role in it. How convenient. The "bipartisan" Financial Crisis Inquiry Commission kicked off its hearings this year by pillorying Wall Street. It also vowed to investigate the impact of housing policy. So far all it's done is farm out a study on the subject to a Berkeley economist pal of Phil Angelides, the commission's Democrat chairman. Predictably, his 25-page paper concludes that the Community Reinvestment Act had no real role in the crisis,...
  • Barney Frank: The Poor Should Rent, Not Own( Dem admits disastrous mistake)

    02/02/2010 6:45:30 PM PST · by TigerLikesRooster · 53 replies · 1,894+ views
    The Atlantic ^ | 02/01/10 | Daniel Indiviglio
    Feb 1 2010, 9:00 am by Daniel Indiviglio Barney Frank: The Poor Should Rent, Not Own In its final installment of the Big Think's "Went Went Wrong" Series on the financial crisis, they interviewed Financial Services Committee Chairman Barney Frank (D-MA). Much of the interview was predictable: Frank mostly explained what anyone closely following the financial regulation push in Congress already knew. But there was one fascinating gem in discussing where Fannie and Freddie went wrong. Frank views ushering the poor to own homes as a mistake and believes they should rent instead. Frank was responding to the question about...
  • The Community Reinvestment Act, Evaluated

    ...Bank of America said in 3Q 2008 that while its CRA loans constituted 7 percent of its owned residential-mortgage portfolio, they represented 29 percent of that portfolio's net losses. [Pinto 2009a] The annualized loss rate from the CRA book was 1.26 percent and represented 29 percent of the residential mortgage net losses. [Husock 2008]... ...According to George Benston of Emory University, larger banks' loans to low to moderate income borrowers are operated as a strategic loss to get a satisfactory CRA rating for regulatory approval for mergers and acquisitions. This means larger banks charge extremely low rates that smaller banks...