Quote:
Originally Posted by Sun Tzu
This just seems to go round and round. "Capitalism" collapsed? So the gift our 95th Congress and Jimmy Carter called the CRA and the multiple Federal Financial Supervisory Agencies enforcing it had no part in this mess?
|
That's ridiculous. Of course not. The CRA did not say "give out loans to people who are guaranteed not to be able to pay them back because you think you'll profit by reselling the house when it rises in value." The CRA was never intended to secure untenable half-million dollar loans to pizza boys. It specifically indicates that while banks should not redline based on race or neighborhood location, it should offer credit
in a manner consistent with safe and sound operations.
The full quote, from the Federal Reserve Board, regarding the CRA is:
Quote:
|
Originally Posted by federalreserve.gov/dcca/cra/
The Community Reinvestment Act is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods, consistent with safe and sound operations.
|
It is absurd to turn around and claim that the CRA is therefore responsible for banks acting well outside the boundaries of safe and sound operations so that their leaders could get rich off the backs of dumbasses and uneducated people too ignorant to understand that they were being encouraged to get over their head in a loan. It is even more absurd to claim that the CRA is responsible for banks purposely falsifying or omitting information about applicants so that they could guarantee a loan would be extended. The CRA was not written such that fraud is legally requested, required, or encouraged.