JoeB131
Diamond Member
That's actually what we did in this country. But blacks complained about discrimination much like they do here, so Bill Clinton had his HUD secretary (Andrew Cuomo) the youngest and most inexperienced of any other secretary, lower bank standards so blacks could qualify for home loans. They couldn't lower them for one race of people, they had to lower them for everybody, so they all jumped in on the bandwagon.
As we both know, this led to the housing bubble and bust. You didn't even need a credit check or down payment to buy a house. Walk into just about any bank and they handed you money. But the only possible way for them to have some security were ARM"s. If we go back to prime loans, blacks will complain once again about discrimination because they don't have the education to understand loan standards.
Actually, what led to the housing bust was white people buying McMansions they couldn't afford with the expectation of flipping them in a few years at a profit. It really had nothing to do with ending redlining (which happened back in the 1970's) or the minor tweaks Clinton made to the CRA. In fact, most of the banks that failed didn't handle CRA Loans. Those were too tightly regulated to have the kinds of shenanigans we got in the Suburbs.
I took out home loans in 1987, 2004 and 2021. The loan I got in 2004 was EASIER for me to get than the one I got in 1987. It was a no money down VA loan even though I was carrying thousands of dollars in other debt thanks to the First Bush Recession. The one I got in 2021 was a LOT harder to get, even though I was carrying no debt, had money in the bank, because the banks were doing what they should have done all along- scrutinizing everything.
The fact is, Bush was fine with easy to get home loans. Activity in the housing industry offset the manufacturing jobs we were BLEEDING on his watch.