8537
VIP Member
That clip doesn't even mention the Community Reinvestment Act.
It does, however, show the result of it. Think about it for a little bit and you might understand.
I've thought about it. Housing market foreclosures in Bradenton Beach and Naples Florida, Las Vegas Nevada and SFO, Ca we're not caused by poor people taking loans.
Fannie and Freddie only bought conforming loans. The loans with the highest failure rates were outside of their reach, being bought and sold in the private market.I agree that laws do not cause financial meltdowns, people do, but the idea that everyone could own their own home. and the attempts to make that dream happen through expanded access to loans, coupled with Fannie and Freddie being willing to buy those bundled loans, made it worse. If the government had just passed the law, and stayed out of it, we would not have had a meltdown.