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To: SpaceBar

The CRA and Key Players

http://www.freerepublic.com/focus/f-news/2091845/posts


10 posted on 07/20/2010 12:26:09 PM PDT by WOBBLY BOB (drain the swamp! ( then napalm it and pave it over ))
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To: WOBBLY BOB

The CRA had very little to do with the meltdown.

Only 4% of the top 25 lenders making subprime loans were subject ot the provisions of the CRA.

Fannie and Freddie were not the prime cause either. Between 2004 and 2006, F&F actually cut by 50% their holdings in subprime loans.

The private sector banking institutions are largely responsible here. These private non-bank lenders enjoyed a regulatory gap, allowing them to be regulated by 50 different state banking supervisors instead of the federal government. And mortgage brokers, who also weren’t subject to federal regulation or the CRA, originated most of the subprime loans.


16 posted on 07/20/2010 12:46:34 PM PDT by NOVACPA
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