[FreeReign]

I hate to be the devil’s advocate, but I don’t see where the CRA had much to do with this at all

First, the CRA did not force anyone to make dangerous loans. In fact, the original act specifies that it should “be consistent with the safe and sound operation of such institutions”.

The problem started in 1989 with Home Mortgage Disclosure Act. Banks were forced to collect racial data on mortgage applicants. Then came the 1995 Clinton modifications to the CRA.

There were never any monetary penalties if an institution did not comply with the CRA, it only affected applications for new facilities and preferable treatment on inter bank loans, even after Clinton’s 1999 revisions.

Private plaintiffs and the Justice Department brought suits against lending institutions. "Patterns of Discrimination" were charged.

See this.

Also, I can’t find that low income loans are the majority of the failures. Everything I see points points to middle and upper middle class foreclosures being the problem.

You'll have to explain how you come to the conclusion that middle and upper middle class foreclosures are the problem.

[A.Hun]

Private plaintiffs and the Justice Department brought suits against lending institutions. "Patterns of Discrimination" were charged.

It appears that those lawsuits were routinely dismissed.

As for mortgages-if you check the graphs, the worst foreclosure rates are in the upper middle class to upper class areas. Stockton CA is #1 in the nation for foreclosures. I can't see low income borrowers buying houses in those areas.

Thanks for the response.

[Sunnyflorida]

“Private plaintiffs and the Justice Department brought suits against lending institutions.”

And then you had the Rainbow Coalition going through the data looking for banks to sweat.