CRA blame for housing bubble is racist scapegoating baloney

The angst.

***info update!!!***

Whites got 72.5 percent of subprime mortgages, Blacks got 16.2 percent of subprimes, while the Hispanics got only 6.2 percent, less than their share of the population. According to Compliance Technologies. a provider of information to banks and government agencies.

1. CRA DID NOT CAUSE THE HOUSING BUBBLE.
2. THE HOUSING BUBBLE WAS CAUSED BY DIRECT MARKET MANIPULATION by industry "professionals" and speculation because availability of ARM loans.
3. Lenders purposely encouraged speculation with ARM loans. The Feds did with low interest rates.
4. THERE IS NO GUARANTEED LIQUIDITY IN REAL ESTATE EXCEPT FORECLOSURE. Take notes Phil Gramm.
5. I'm a fiscal republican that has a big issue with NeoCons.

Reported by the NYT, in 2007 caucasians took out 71% of the subprime mortgages.
http://www.nytimes.com/2008/08/03/realestate/03mort.html?_r=2&partner=rss...
The song is 'Freedom of Speech' by Above the Law, OLD SCHOOL.

sources: wikipedia terms "Gramm-Bliley Leach-Act", http://realestatedecline.com/top_10_reasons_for_american_housing_crash.htm, http://www.huffingtonpost.com/robert-weissman/deregulation-and-the-fina_b_826...

The HUD database has the information on who foreclosed, whether or not it was their primary or secondary residences and what the borrower's occupation is. You would not believe how many realtors, brokers and real estate agents speculated to keep the bubble large. So the demand was artificial.
Since the economy couldn't do price young borrowers out of the real estate market, the business insiders had to pick up the slack.

And of course, real estate and Obama are heavily vested in Real Estate. So don't expect this problem to be remidied anytime soon.

Category:

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• subprime
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[brottha]

"Neocons can't be trusted with objectivity."

Ain't that the truth! Thank you for compiling this!

[stifflersmom12]

Nice man. Keep up the good work.

[tsharpmac420]

Society has even developed a term for the effects of this act, its called being nigger rich.

[tsharpmac420]

@liverleef that link wasn't the whole act, it was only the consumer protections. The other parts of the law make it clear that the whole purpose of the it was to HELP MINORITIES get loans for cars, homes, businesses and plain old credit. It put an end to the practice of redlining, which was a legal form of discrimination that occurred disproportionately in low-income, predominately minority communities with rates of single mothers far higher than the national average

[liverleef]

@tsharpmac420 I read it. You are correct that it mentions minority several times. Every instance I read was stating that majority owned institutions can receive CRA credit for cooperating with minority owned businesses and organizations. So this would help improve their chances of getting a satisfactory or outstanding CRA rating. I didnt see where it said that the mortgages that banks issue are to be given to individuals who are minorities.

[tsharpmac420]

you have to put in the w w w

[tsharpmac420]

@liverleef here is a link to the FDIC page with the actual law text, when you get to the page hit ctrl-F and type in minority, it shows up 11 times in the bill. Read the context they are all used in, most make it obvious that the intention of the CRA was to help minorities get loans and credit... fdic.gov/regulations/laws/rule­s/6500-2515.html

[liverleef]

@tsharpmac420 That isnt a statement from the actual legislation. The law itself makes no mention of the number mortages to be issued to minorities. The law states that banks should lend to people in certain neighborhoods. Its about neighborhoods, not the color of the person applying for the loan. You make a valid point though that these neighborhoods are likely to be racially defined. Fair enough.

[liverleef]

@tsharpmac420 I think this is a much more accurate perspective.

[tsharpmac420]

@liverleef I know longer hold the view that any 1 person, act or company is to blame. That blame rests on every one from the people to the government et el

[tsharpmac420]

@liverleef you missed it because you didn't read it or skipped over the purpose stated at the begining, this shit below is straight from the Office of Comptroler of Currency "Prohibits redlining (denying or increasing the cost of banking to residents of racially defined neighborhoods), and

•Encourages efforts to meet the credit needs of all community members, including residents of low- and moderate-income neighborhoods"

[liverleef]

@tsharpmac420 Yeah, but the CRA only applied to FDIC insured banks. NOT independent mortgage companies like Countrywide, yet they are the ones who produced the most sub prime mortgages. Please explain how independent mortgage companies like Countrywide and Ameriquest were "forced" to give sub prime mortgages.