The Banks failed to actually do their job of checking the financial history and credit potential of the consumer. Gov’t did’t force them to do a that.”””
Sorry-—but Janer Reno did exactly that.
I still remember her press conference where she stood up and told the banks that she would use the Justice Department to sue them if they didn’t “ give people a chance to own their own homes”. Carter created the CRA and demanded that even welfare and food stamps were to be considered as income. Loans were given to people who didn’t have the credit history & work history & ethics to even buy a T-shirt on payments.
I can remember real estate people that cringed with all such activity. One said “IF you could fog a mirror, you had to get a loan,” Some people coming into title companies could only sign an “X” !!!!!! They could not read nor write!!!
A loan was given on a $650,000 house in Fresno, Calif., to an illegal immigrant who was a strawberry picker!!!
He & his family got irate & yelled loudly when the place was foreclosed on!!!
Every single bit of this whole mess can be traced back to Jimmah Carter and the CRA. Banks & depositors were victims.