What say you?
Another big part of the Clinton legacy. The 1995 changes led to the mess we’re in now. Thanks, Bill.
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.
Getting rid of the Community Reinvestment Act should be a condition to any ‘bailout’.
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.
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.
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?)
Yes. and HUD and the Security and Prosperity Partnership that made the banks give home loans to illegal aliens.
See http://www.youtube.com/watch?v=exxVZTKq1vA
See also http://www.youtube.com/watch?v=1RZVw3no2A4 for a really good 10 minute video about the problem.