Quote:
Originally Posted by powerclown
The Democrats supported lowering lending standards so more minorities could buy homes. Now, in 2009, which groups do you think are suffering the most from foreclosures?
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This is grade A BS fed by republicans. First of all, the idea that it was the lowered lending standards of fannie mae and freddie mac that caused this mess is BS. While they were certainly a part of the mess, they carried less subprime and alt-A mortgages than most banks.
And as an aside, the idea that it was the CRA or similar measures that caused this mess is nothing more than unsubstantiated race baiting.
About half the sub-prime loans have been made by companies (independent mortgage companies and so on) that are not regulated by the CRA and had no dealings with freddie and fannie, and another 25 to 30% came from companies and banks only partially regulated by it.
Now, which groups are suffering the most from foreclosures? Well, I don't know. But Im thinking that the reason that Las Vegas, NV, Boca Raton, Orlando and Miami in FL, and Riverside county in CA are all in the top 10 in foreclosures is not because lenders were trying to offer easy loans to low income minorities. Nevada still tops the nation in foreclosures as a state...
Now, if one wanted to really understand this mess, they'd look at papers like
http://www.newyorkfed.org/research/s...orts/sr318.pdf
instead of easy partisan talking points.