“How did the democrats “demand” poor people, people who could not afford these loans, be given these loans?
What forced banks to underwrite these loans? A banks does not have to lend to anyone who can not afford the payment!”
Study up on the Community Reinvestment Act. It goes back almost 30 years and was “supercharged” during the Clinton debacle. It did, indeed, force financial intermediaries to lend mortgage money to folks who did not have the credit worthiness to otherwise qualify for loans. It was originally intended to prevent banks from “redlining” areas from loans.
Too much government intervention strikes again.
Why don't you just cut and past and tell everyone what page and paragraph that is found on.
CRA does not do this!! You don't know what you're talking about! I wish this were the case, but it's not. If you have a case study I'll be glad to look at it, but no one yet has shown this as a major cause as to why we have the financial crunch.
All CRA does is to make sure banks are not discriminatory in their lending practices. Redlining is just one facet of CRA. Banks are not "forced" to give out loans to people who can not afford them. No bank is required to do this!