Posted on 06/19/2008 7:07:41 PM PDT by Jo Nuvark
Jimmy Carter signed The Community Reinvestment Act (CRA) in 1977. The Act grew out of the complaint that urban banks were "redlining" inner-city neighborhoods, refusing to lend to their residents while using their deposits to finance suburban expansion.
The Clinton administration has turned the Community Reinvestment Act into one of the most powerful mandates shaping American cities (snip) and it is a vast extortion scheme.
(Excerpt) Read more at city-journal.org ...
SUB PRIME LENDING CRISIS PING!
Clinton? Extortion scheme? How can that be?
Does the world revolve around the inner city and black people? Some people seem to think so.
I’m tired of seeing executives and good
intentioned business people taking hit after
hit from the Government. In my Pollyanna way,
I’m trying to give them some ammunition.
Is that so wrong?
[... Does the world revolve around the inner city
and black people? Some people seem to think so...]
Another Cater bite in the butt. Will it never end?
The Community Reinvestment Act funnels billions
to left-wing activists, while threatening to
destabilize lower-middle-class neighborhoods.
So CRA lenders give money to people in crap neighborhoods who they know cannot pay it back in the first place...which makes it seem like they are doing this ‘great’ thing....then when people cannot pay the loans....they write off the defaults....then start the process by lending money on that same property over and over....making millions!!!! I wish I would have thought of it :o
I find it interesting that any bank would be forced to loan money to anyone that they know will not pay it back.
No, but that is only one of the ways that the Left tugs at our Christian heart strings to use our freedoms to undermine them. That is how we end up with all these government programs to "help people" which in fact only enslave them to the central government.
They use our morals and freedom to destroy them.
The CRA funnels billions of investment dollars
through groups that understand protest and
political advocacy but not marketing or finance.
There is no surer way to destabilize a neighborhood
than for its new generation of home buyers to lack
the means to pay their mortgages—which is likely to
be the case for a significant percentage of those
granted a no-down-payment mortgage based on their
low-income classification rather than their good
credit history.
Great, just great. Socialism is more rampant than we thought.
[... If they are crooks, then it is just...]
The Governmenet is like a creepy big brother
sending his toddler brother into the store to
steal candy for him.
Did you read Cal Thomas?
A no-down-payment policy reflects a belief that
poor families should qualify for home ownership
because they are poor, in contrast to the reality
that some poor families are prepared to make the
sacrifices necessary to own property, and some
are not.
Govt. has created a lot of bureaucracies to help them out of their poverty. A great many govt. employees and private welfare agencies earn good livings helping the poor out of poverty. In fact they are so good at their jobs we now have a permanent underclass that is unemployable and uneducated.
I get so fed up with the "do gooders" who really don't want to solve problems but really only want to feel good about themselves.
The lending crisis is another great example. Give loans to people without the credit worthiness to get normal loans and then expect them to start behaving like borrowers with good credit ratings. It never occurred to anyone that they had bad credit because they did not have the financial discipline to pay their bills on time?
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