Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: jwalsh07

Sorry, we can’t pin this in any part on the Community Reinvestment Act. That’s been on the books for 30 years without this sort of repercussion. When nonprofit groups lend to the poor, they demand all sorts of safeguards—financial education, limits on the value of the houses sold, and so forth. The mortgage companies that have lended did not—they loaned to everybody, and lots of times, not even poor people—just people who bought more house than they could afford.


51 posted on 09/15/2008 4:03:00 AM PDT by ciocia
[ Post Reply | Private Reply | To 34 | View Replies ]


To: ciocia

You’ve got to be kidding me! The CRA was a bad law that kept getting ratcheted up over the last 30 years. Banks were forced to abandon their sound lending practices of requiring good incomes, good credit, and significant down payments. A ‘financial education’ class is hardly a compensation for homebuyers who don’t have any of the above.


52 posted on 09/15/2008 4:07:29 AM PDT by 9YearLurker
[ Post Reply | Private Reply | To 51 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson