Dumber than a box of rocks Charles, The Community Reinvestment Act, passed in 1977, requires banks to lend in the low-income neighborhoods where they take deposits. Just the idea that a lending crisis created from 2004 to 2007 was caused by a 1977 law is silly. But it’s even more ridiculous when you consider that most subprime loans were made by firms that aren’t subject to the CRA. 50% of subprime loans were made by mortgage service companies not subject comprehensive federal supervision.
don October 11, 2012
at 3:08pm
Dumber than a box of rocks Charles, The Community Reinvestment Act, passed in 1977, requires banks to lend in the low-income neighborhoods where they take deposits. Just the idea that a lending crisis created from 2004 to 2007 was caused by a 1977 law is silly. But it’s even more ridiculous when you consider that most subprime loans were made by firms that aren’t subject to the CRA. 50% of subprime loans were made by mortgage service companies not subject comprehensive federal supervision.