Posted on 09/23/2008 1:25:24 PM PDT by Rodm
Assault on the mortgage lenders: in the name of racial justice, the Clintonites want the power to decide who gets a home of his own - efforts to impose regulations on banks to make loans even if applicants are not creditworthy
National Review, Dec 27, 1993 by Robert Stowe England
QUIETLY, behind the scenes, the Clinton Administration is preparing for the biggest regulatory crackdown of recent years. Attorney General Janet Reno is linking up with banking regulators and with HUD Secretary Henry Cisneros to end the supposed epidemic of discrimination against minorities in making home loans. The implications for society at large are ominous.
Here, as in affirmative-action efforts in hiring, college admissions, and the drawing of voting districts, the Washington establishment is obsessed with "disparate impact," which it equates with racism. In the mortgage-lending area, there is ample evidence of disparate impact to feed this obsession. Data collected by the Federal Government reveal that in 1992, while 16 per cent of white applicants for mortgage loans were rejected, 36 per cent of black applicants were rejected.
(Excerpt) Read more at findarticles.com ...
This article should be required reading for every man, woman, and school-age child in America.
An excellent article! Thanks for finding and posting it.
IMHO, this action of the Federal Govt in the early 1990’s was a deliberate move to transfer the cost of public housing from the Federal Govt to private capital sources. Either way, we the taxpaying public are going to pay for the cost of housing for low income folks.
Excellent find, Rodm.
Thanks.
Fantastic find...Thanks...I’ll have to print this out for a few folks I know...I’m the only conservative in a family full of Blame-Republicans-for-Everything Liberals...We get along fine, though...
The logic of capitalism (”greed” as the Democrats call it) of America insures that if you qualify via credit, work history and income level...and represent a quantifiable risk, a Bank or lending agency will give you a loan. This would come irrespective of age, race, religion, sex, marital status or sexual preference. If the institution thought you would pay them back, they would give you the money, as they earn interest on their secured (by the home) investment.
The problem arises when “good in theory” and “bleeding heart” Liberal policies become mandated to the business community, they make fees and lay off the bets (hedge) on GSE’s to relieve the risk from the individual company, or in the case of Wall Street, they bundle garbage loans with high initial yields and sell them across the world for huge management and securitization fees...then when they do not pay, the uninsured risk is borne by the bondholders.
The Democrats were responsible for this and many people in and around real estate made a lot of money in the 1990’s and 2000’s, no doubt, me included.
The problem is the credit card ran out and the car lost all its oil when home values stopped rising (artificially) due to the influx of easy mortgage financing...the fallout is that properties were over-valued to begin with via cheap and easy money, now the correction will further plunge low-income areas to new lows and saw off the high-end areas to a lower place, but as they crime, blight and appeal still are intact for nice areas, will become more valuable as time permits.
We are looking to trade up in mid-2009 as we think we will be able to pick up a decent home in a good area for a reasonable price.
PING TO THE GHOST OF CLINTON’S PAST!
Must read!
PING TO THE GHOST OF CLINTON’S PAST!
Must read!
BTTT, good find.
This long article from Winter 2000 explains a lot!
“...A radical group called ACORN Housing has a $760 million commitment from the Bank of New York;..”
City Journal Home.
Howard Husock
The Trillion-Dollar Bank Shakedown That Bodes Ill for Cities
The Community Reinvestment Act funnels billions to left-wing activists, while threatening to destabilize lower-middle-class neighborhoods.
Winter 2000
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 own striving, is the key to their well-being....
Excerpt.
http://www.city-journal.org/html/10_1_the_trillion_dollar.html
IMHO, you’re exactly right.
Thanks! I’ve sent it out and about- this is superb!
Don’t miss this from 1993 - unbelievable.
Oh- and as Bill Clinton told Greta- all his old economic advisors are now working for...OBAMA!
BTTT
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