When the Government forced the Banks to Loan Money because the so called Playing Field wasn’t level, all bets were off.
I worked for a Major Bank back in the 70’s that had very strict Lending Guidelines in place. When The Community Reinvestment Act was instituted under Carter, the Bank pledged $10,000,000,000 to the Program.
I was talking to a Loan Office about it and he said that it was great Advertising, but many Loan Officers expected the Program to impact Loan Delinquency Rates since the Lending Guidelines were artificially lowered.
It was obvious from the get go. Reparations cost big bucks.
Interesting info.
I’ve read books about the meltdown talking about guys who were making 8 bucks an hour in a California car wash getting one week of training and becoming mortgage officers making 10 grand a month.
And they were writing half million dollar loans to illegals making 8 bucks an hour.