Greenlining CRA Myths & Facts

[groberts1776]

They forgot to tell you that the CRA was strengthened by Grahm, Leach, Bliley which was passed in 1999, just before the subprime market took off.

[elkellenhabla]

@groberts1776 what's the bill name/number?

[groberts1776]

@elkellenhabla

Grahm - Leach - Bliley is also known as the Financial Services Modernization Act of 1999. See the "Remaining Restrictions" section of the Wiki on the bill for info on how the CRA was strengthened by the FSMA. Clinton enforced the CRA strongly, Bush warned bankers to take safety and soundness into account.

The strongest defender of the CRA has been the law firm Traiger and Hinckley which largely depends on CRA-generated business. They won't "bite the hand that feeds..."

[TomOBrien58]

Where are the sources for these assertions?  Please see "Subpime Lending and the Community Reinvestment Act", Kevin Park, Nov 2008, Joint Center for Housing Studies, Harvard University. Park examines the evidence. In the US historically when the government has tried to force people to do things -- think of the draft during the Vietnam War -- some people always say "No." So where are the bankers who said "No" and went to jail or lost their jobs? Where is the evidence?

[jjrglobal]

Fact : the CRA along with the GSE's Fannie and Freddie and the Federal Reserves manipulation of interest rates caused the financial crisis. Government is totally responsible for all this shit. Anyone that thinks otherwise is an uninformed moron.

[DrCruel]

@jjrglobal That's a bit harsh. But it does stretch credibility, to claim that forcing banks to make loans to poor families, in the name of "racial equality", won't lead to problems down the road as many of these families default on their loans. Claiming that higher interest rates to high risk debtors is "predatory" does demonstrate a lack of understanding about how the loan industry works.

[deltapunk21]

Hystericla, another leftis tliar apologizing for their own failures and evils don't even deal with the right-wing arguements, they merely create some more myths to pretend to argue against what has been clearly substantiated. The Gov forced bansk to loan to people who could not pay back the loans, the overwelhming amjority of the so called bad loans were CRA, primary culprits Fannie and Freddie left-wing democrat created fascist orgs. Credit expansion fueled it duh!

[jlroberts9914]

"a landmark law that helped to rebuild some of the nations most desolate communities by requiring banks to lend, invest and open branches in low-income areas" Very simple blame game. Have Job make payment. Do not have enough do not buy so big. DUH. How stupid can these people be? When you start your sentence with it is really the republicans fault you play to a captive audience.

[benfmo]

85% of Sub Prime loans went to none CRA banks.

Greed and no supervision of loans by the gov local and national...

[ROTS2005]

"Greed and no supervision of loans by the gov local and national"

Fine this is govts fault Then why are we expanding the size of govt and allowing them to try to fix the problem if they are part of the problem?

[deltapunk21]

Why the hell shouldn't we? The haven't bought the homes, the bank did, and these insular, whiny, criminal childish pigs with a heavy dose of racism(blacks, illegal aliens etc.) thought the demonrats were giving goodies away. They didn't care about where th emoney came from, or the consequences, they were Greedy and maintain it by having no honor and campaigning to stay in stolen homes.

[atypicalcalifornian]

stupid dems. good job, you're ruining the country even more with Obama now. FDR did the same thing, blame it on the republicans and free market even though ya know, the government protects and forces lenders. What a stupid video, I'm glad you don't have many views.

[blt4rox]

Propoganda at it's finest.

As if people didn't KNOW they couldn't afford the home they bought.

Many are to blame for this crisis....and the CRA of 1994 is a MAJOR culprit.

[badfickle]

Only 6% of the subprime mortgage market went to low income borrowers from CRA banks. Only 1 in the top 25 subprime lenders was regulated by the CRA.

[deltapunk21]

That is a lie. There is no such as a CRA banks, all banks are subject to the CRA stupid including BOA, Citi, and of course the main mortage culprits the criminal democrat Rahm EmmanuelL PAYING HIM Hundreds of thousands of dollars DOLLARS A YEAR ALONG WITH ONLY CLINTON APPOINTED uNCONSTITUTIONAL CRONIES.

fACT forcing banks to give loans base don quota, getting lawsuits to fund "communities" ghettos with bad/no credit bozos with tons upon tons of loans. Add Credit Expansion Voila. Shit

[badfickle]

You are entitled to your own opinions. Not your own facts. You are simply misinformed. Not all banks are subject to CRA regulations. Only those who chose to use FDIC insurance. My bank for instance uses private insurance and is in no way regulated by the CRA. Private mortgage lenders are not subject to any regulation at all.

[deltapunk21]

Exactly. These people voluntarily signed the contract, and this was supposedly another demonrat "Affordable Housing"(AKA ANTI-MARKET FASCIST Theft) Prices weren't artificially lowered so people could by them by price controls, nope they just forced the banks to give loans to people who could not pay back the loan hardly at all to not at all in any way shape or form, as a result bankrupting our Finance industry. Screw Dodd and Frank. Damn them criminals.