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It Is Time To Get Rid Of The Community Reinvestment Act
9/30/2008 | Laissez-Faire Capitalist

Posted on 09/30/2008 4:45:35 PM PDT by Laissez-faire capitalist

The Community Reinvestment Act was passed by the 95th US Congress and signed into law by Jimmy Carter.

This Act requires that banks offer credit (home loans, etc) to minorities and the "underpriveleged."

Democrats have used code-words to bolster this ACT, saying that it has provided home ownership opportunities to minorities, needy Americans and the "underprivileged."

Changes in 1995 allowed groups like ACORN to put pressure on banks to give home loans to unqualified home loan applicants. These changes broke down home loan applications by race and income (among other factors) and allowed community organizing groups (@ssholes like ACORN - friends to Obama), to make a stink when banks weren't giving enough loans to minorities and unqualified home loan applicants - the "underprivileged."

This ACT helped make "affordable housing" available to sooooo many more people.

Affordable housing my @ss.

This Act helped grease the skids for the Fannie Mae and Freddie Mac meltdown and $1 trillion dollar tax-payer bailout because minorities and unqualified home loan applicants were being discrimmmmmminated against.

Banks had pressure put on them by Fannie/Freddie, and by @ssholes like ACORN and they gave loans out to people they never would have under normal circumstances - people with bad credit, no collateral, a horrible employment record, or no job at all.

BTW, why does Obama still support this ACT?

Why does he still support hom,e loans for unqualified buyers?

Does he want another market meltdown down the road? Does he want another taxpayer bailout down the road?

I guarantee you, when this ACT is targeted, the Dems will use the typical race-baiting tactics they always use...

But, this ACT has to go.

Taxpayers will demand it.


TOPICS: Chit/Chat; Government; Miscellaneous; Politics
KEYWORDS: bailout; barneyfrank; chrisdodd; congress; cra; democrats; economy; election; elections; fanniemae; financialcrisis; obama; obamatruthfile
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1 posted on 09/30/2008 4:45:36 PM PDT by Laissez-faire capitalist
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To: All

What say you?


2 posted on 09/30/2008 4:47:10 PM PDT by Laissez-faire capitalist (Keep working! Welfare cases and their liberal enablers are counting on you!)
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To: Laissez-faire capitalist

Another big part of the Clinton legacy. The 1995 changes led to the mess we’re in now. Thanks, Bill.


3 posted on 09/30/2008 4:48:59 PM PDT by RepublitarianRoger2
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To: Laissez-faire capitalist

The CRA has to be repealed. Cato has an excellent paper on it and there are numerous articles that predicted what has come to pass. Affirmative Action and underwriting do not mix well.


4 posted on 09/30/2008 4:49:46 PM PDT by PoliticalDookie
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To: Laissez-faire capitalist

Its a financial weapon of mass destruction because it seeks to decouple the price of housing from inflation.
Social Engineering at its worse. Kill it.


5 posted on 09/30/2008 4:51:43 PM PDT by Proud_USA_Republican (We're going to take things away from you on behalf of the common good. - Hillary Clinton)
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To: Laissez-faire capitalist

Getting rid of the Community Reinvestment Act should be a condition to any ‘bailout’.


6 posted on 09/30/2008 4:57:09 PM PDT by antonia ("Be the person your dog thinks you are....")
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To: PoliticalDookie
The CRA has to be repealed. Cato has an excellent paper on it and there are numerous articles that predicted what has come to pass. Affirmative Action and underwriting do not mix well.

Do you mean this?

7 posted on 09/30/2008 5:02:34 PM PDT by antonia ("Be the person your dog thinks you are....")
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To: antonia

Thanks for the link.


8 posted on 09/30/2008 5:08:40 PM PDT by randomhero97 ("First you want to kill me, now you want to kiss me. Blow!" - Ash)
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To: Laissez-faire capitalist

I think something like the Community reinvestment act is needed.

The number of Banking institutions in this country have fallen from 14,500 in 1932, to just over 7,000 now. And the mergers are continuing. Banks don’t have much incentive to put the money back into the community where they got it. And I think they should.

That said, how you implement it needs to make sense. Loans shouldn’t exceed what a person can afford. And if they are lower income, it needs to be a smaller loan.

I also think that most communities need to revisit affordable housing. Housing codes, which I’m all in favor of, drive the cost up. But nobody builds smaller units for lower income people. I think there is demand there, but I think that housing codes probably exclude such communities from being built.


9 posted on 09/30/2008 5:15:33 PM PDT by DannyTN
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To: DannyTN; All

The purpose of a bank isn’t to put money back into communities. The purpose of a bank isn’t for social engineering or community help or involvement.

Banks are there to make money, and if someone wants the services of a bank, they must do their part by keeping a good credit rating, staying with their job instead of constantly quitting them, and working to educate themselves so that they can get a better paying job - thereby increasing loan opportunities.

So, if loans should be smaller for low-income people, that pretty much eliminates almost any chance of a home loan for low-income people.

Giving home loans to low-income people has helped tremendously to this financial meltdown.

Affordable housing?

“Affordable housing” is a smokescreen that Dems have used to allow home-loans to low-income people, those with bad credit, no job, no collateral or those constantly quitting their jobs.

Low-income people are just going to have to get their acts together. Simple as that.

This bailout is the result of what Barack Obama, Barney Frank, the Congressional Black Caucus, Chris Dodd, and other Democrats have called “affordable housing.”

Low-income people can live in apartments until they improve their lot in life.

Taxpayers are going to foot the bill on the bailout and they have spoken (they don’t want any bailout) and they will continue to speak on this.

The days of home loans to low-income people, those with no collateral, no job, those who quit their jobs all the time and so on, is over.

Those days are over.


10 posted on 09/30/2008 5:28:17 PM PDT by Laissez-faire capitalist (Keep working! Welfare cases and their liberal enablers are counting on you!)
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To: RepublitarianRoger2

The fact that government bears such a huge responsibility for the current mess means any response should eliminate the conditions that created this situation in the first place, not an attempt to fix bad government with more government.


11 posted on 09/30/2008 5:29:32 PM PDT by antonia ("Be the person your dog thinks you are....")
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To: antonia

You got that right!


12 posted on 09/30/2008 5:30:46 PM PDT by RepublitarianRoger2
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To: Laissez-faire capitalist

Yes, I completely agree. You have to fix the root cause of this problem, and that means killing CRA. Banks need to stop being forced to make high risk loans. In fact they should feel absolutely no pressure to do so, and perhaps based on their “health”, strongly discouraged from doing so.

Further, I would say, legislation needs to be put in place that does not allow any high risk loan (currently in existence) to be sold and/or bundled together and sold like an investment portfolio item.


13 posted on 09/30/2008 5:31:21 PM PDT by Secret Agent Man (I'd like to tell you, but then I'd have to kill you.)
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To: antonia

Like I said in post #9.

The days of “affordable housing,” i.e., home loans for low-income people, those with no jobs, those who are always quitting their jobs, those with bad credit, those with no collateral, and so on, are over.

Those days are over.


14 posted on 09/30/2008 5:32:29 PM PDT by Laissez-faire capitalist (Keep working! Welfare cases and their liberal enablers are counting on you!)
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To: Laissez-faire capitalist

Did not realize it reached back that far...geeez. So this is the act that allowed creepy liberal groups to abuse the system....and WE have had to pay for it and now, have to bail out the years of abuse and failure. WE DO NEED TO GET RID OF THIS....how do we start? (Knowing the liberals will scream bloody murder?)


15 posted on 09/30/2008 6:09:08 PM PDT by Republic
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To: Laissez-faire capitalist

Yes. and HUD and the Security and Prosperity Partnership that made the banks give home loans to illegal aliens.


16 posted on 09/30/2008 6:13:13 PM PDT by hedgetrimmer
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To: Republic

We will have to put pressure on conservative Dems and conservative Repubs to scuttle this ACT. Lots of pressure. And we will have to go to the mat for them - talk rado, internet, BB’s, forums, etc - when they do. Before that, the net will have to be seeded with facts about this ACT.

Conservative Dems are far more likely to be beholden to the taxpayers than lib Dems are. They could be an essential ally in this.

Lib Dems will use race-baiting tactics and cries of bigotry to defend their precious ACT.

The tax payers though, are pissed about the bailout, so now is the time to work on getting rid of this ACT.


17 posted on 09/30/2008 6:15:38 PM PDT by Laissez-faire capitalist (Keep working! Welfare cases and their liberal enablers are counting on you!)
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To: hedgetrimmer

I heard that home loans had been given to illegal aliens. I just didn’t know that it was the SPP that was involved.

Will taxpayers have to foot the bailout bill for them, too?

&%$!.


18 posted on 09/30/2008 6:17:42 PM PDT by Laissez-faire capitalist (Keep working! Welfare cases and their liberal enablers are counting on you!)
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To: Laissez-faire capitalist

Is there enough information in your original posting to begin this campaign? I will start tomorrow. We can do this and help to kill a MAJOR catalyst that will continue to rear its ugly head as new ‘code words’ are invented, opening the floodgate of bank failure once again. After all, we did it, dems and republicans regarding the first bailout bill and best of all, we raised heck regarding ACORN...a slimy group that led us DIRECTLY to OBAMA.


19 posted on 09/30/2008 6:22:47 PM PDT by Republic
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To: antonia

No, but that’s good one too, this one is from ‘94...
http://www.cato.org/pubs/regulation/regv17n4/vmck4-94.pdf


20 posted on 09/30/2008 7:59:45 PM PDT by PoliticalDookie
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