It wasn't their choice. The law forced them to. It was written in the Act they couldn't refuse a loan based on income. If they tried not to comply, the left wing tried to sue.
people who lied on their mortgage applications are not at fault? Odd.
They didn't have to lie. Because income didn't matter. The banks couldn't ask. They didn't have to be U.S. citizens, either. That question was deemed discriminatory.
The banks had no choice. They took those forced loans to Fanny and Freddie just to get rid of them. F&F bundled them together sold them on the market as GOOD loans.
SOMEONE had to pay off those bogus loans that weren't getting paid, and it had to be us, the U.S. taxpayer. These were OUR "citizens" that scammed the investors of the world.
Once again, the good people of America had to clean up another democrat disaster. And once again, the democrat base walks away debt free.
“It wasn’t their choice. The law forced them to.”n
True.
Someone I know would shout about it to me every evening, disrobing in the process, and then going to take a shower to was the stink of it off. Every work night. I was amazed.
Secondly, the CRA covered loans had lower rates of failure than the non CRA accounts.
If you want a target to blame: Easy money, ie Federal Reserve, local thrifts, Fannie and Freddie, failed credit rating companies.
Finally, the fact that everything was put into housing and 'risk' was securitized, and not diversified in a prudent way led to a financial disaster. Throw in globalization and the middle class being knee capped and you have a financial disaster, not a group of people who couldn't pay back a loan, and that group was poor anyway!