It appears that those lawsuits were routinely dismissed.
Really? Source?
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.
Stockton has a large minority(now majority) population. Like any metro area, there are upper income areas and lower income areas in it.
If you're basing your opinion that most foreclosures are not in poorer neighborhoods because Stcokton Metro appears on a foreclosure list than I can't come to the same conclusion.
Thanks for the response.
Thanks for raising the question.
This is the link and the pertinent quote is below for the lawsuit question. This was the best interpretation of CRA I have been able to find. It is footnoted.
B. Regulatory Process. Under the current CRA regulations, the federal bank
regulators “take[] into account any views expressed by interested parties,”
including community and local activist groups, when deciding whether an
institution’s CRA performance is adequate to approve the pending application.
1. In practice, community and local activist groups have often protested the
applications of depository institutions and their holding companies on
CRA grounds in an apparent effort to hold up the transaction until certain
demands are met. On occasion, such protests have caused institutions or
holding companies seeking regulatory approval for a transaction to modify
particular business practices in order to satisfy such groups and/or the
federal bank regulator, or even to agree to provide a protesting group with
financial support for its particular projects. More often, however, the
federal regulators have rejected these sorts of protests and proceeded to
approve an institution’s or a holding company’s application.
2. When federal bank regulators have approved applications notwithstanding
CRA protests, community groups have occasionally sued the regulator to
block the approval. The courts, however, thus far have dismissed these
actions on the ground that CRA protesters suffer no constitutional “injury”
necessary to invoke federal jurisdiction.6
On the breakdown of mortgage failures vs. income, the trend is the same across the boards. I used Stockton as an example because it is #1. It’s income is way above average.
Most failures are in generally affluent areas that experience mega growth and mega appreciation over the last decade.
I wish I could find info somewhere that just breaks bad mortgages down by income. The reason its important to me is that I believe strongly in home ownership, and if CRA is not to blame, I don’t want starter loans for homes to stop.
I know that the best way to turn someone into a Republican is to make him a homeowner.