WillowTree
Diamond Member
- Sep 15, 2008
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What he leaves out is the role the government played via CRA to force banks to make No Doc Loans to begin with, and how they financed Fannie Mae and Freddie Mac to buy them up (who then proceeded to lie on their financial statements about them).
This hearing is incomplete. Without testimony from the Boston Federal Reserve that wrote the paper recommending "subjective standards", the bank regulators who threatened to pull bank charters if they didn't increase minority lending, Barney Frank and Chris Dodd, the rating agencies that scored subprime portfolios as high investment grade instruments, and the various execs at FM/FM - this is Just A Witch Hunt.
AGAIN with this debunked LIE. The government did not FORCE anyone to lower loan requirements. A few lenders said no, but most were greedy and saw how much money could be made in predatory lending. When Wall Street and lenders realized they could both make big profits bundling mortgages, they BEGGED and CRIED for Congress to loosen standards even more and get more and more loans flowing their way. 83% of the toxic mortgages were issued by PRIVATE LENDERS - not government backed entities. Freddy and Fanny held onto their loan requirements much longer than all other private lenders. This is on Wall Street, deregulation and GREED. Period. I'm glad they're going after these investors. I hope they catch all that they can and that they go to jail for fraud. THE CRA DID NOT FORCE ANYONE to issue subprime mortgages. You need to research and think for yourself for a change.
Community Reinvestment Act had nothing to do with subprime crisis - BusinessWeek
It's Still Not CRA | New America Blogs
you are full of shit, the congressional black caucus.. h