You’re right, the CRA was passed under the Carter admin in 1977. However when the Clintonistas took over they “put it on steroids” as some pundits termed it. The Clinton admin aggressively pursued the goals of the act with the misguided assumption that lending institutions were deliberately discriminating against poor minorities. We now know that was a false premise. Undoubtedly the banks knew better but were forced to sell mortgages when threatened with severe penalties by the Clinton justice department. Where else do you think Tracinski is factually wrong?
So you’re talking about the finacial systems modernization act, correct. Both Republicans and clinton are to blame for that. And yes that was a catalyst. But the article is either misleading or overly dramatic. Quotas had long been filled. But many lenders realized how a soft target could be made by dongoling 0 down, 1% ARMS with no proof of income could be.