Republican say Democrats forced banks to give loans to low income people. Is there a factual basis here?I've heard this several times, but haven't seen anything that validates it - this includes the 2003 NY Times article. Can anyone add more detail? |
They are eluding to the CRA. People who wish to blame it on the CRA do not understand that more loans went to upper-income areas.
The Woodstock Institute, a Chicago-based policy and advocacy nonprofit, found in an analysis of 1996 Chicago-area survey data that low income areas still lagged behind in access to commercial loans. Most small business loans made by CRA regulated banks went to higher income areas; 16.6% in low-income areas, 18.4% in low- and moderate-income tracts; 21.8% in middle-income areas and 23.1% in upper-income areas.
Bill Clinton passed a bill while he was in office demanding that banks give loans to people in lower class neighborhoods.
This was the start of the Dash for cash and over extending because if the banks didn't give the loans to the poor the federal government according to Bill Clinton's bill would fine them (the banks)
But no one remembers this.
This is not support for McCain Or Obama its simple calling attention to the facts. Government should not get into the Private sector. (DEMS AND REPUBS)
Another little bit of info- Al Gore almost chose the CEO of Freddie Mac as his VP back in 2000. The Ceo retired in 2005 with a 100 million buyout! He is a Big DEMOCRATIC supporter! he made millions from it!
Google it please (RICHARD SYRON is the ex ceo of Freddie Mac)
yes
http://query.nytimes.com/gst/fullpage.ht...
banks faced stiff penalties if they did not comply.
the financial meltdown can be laid at the feet of the democratic party, the policy is pure democrat dogma, the idea for giving houses to the poor is the heart and soul of democrat philosophy, and even more so for obamma, that's why he was a community activist, that is why he worked with ACORN. He is even more left wing radical than maxine waters and barney frank.
liberal democrat economic policy has bankrupted our country and as caused world wide economic turmoil, is there any doubt obamma supported this policy? NO! would he have supported Fannie Mae and Franlin Raines the way maxine waters and all the other blak democrats did in the house? ABSOLUTELY
http://www.youtube.com/watch?v=3p1Wc2NFa...
http://www.youtube.com/watch?v=1RZVw3no2...
I've read the Community Reinvestment Act and it didn't say anywhere in there that banks should give people who made less than 50K per year homes that are worth 300K. Affordable housing means housing that the people can afford.
Have a low credit score or not having credit doesn't mean that you're not going to pay your mortgage. We all need a place to live and some people have low scores based on divorce, medical bills, etc. They're not all just irresponsible.
There was a law passed under Clinton and Congress was majority democrat and b/f that you had to make a certain down payment to show u could afford a house but now people who cant afford a house can take out a loan and buy one, even if they dont make enough money to pay off the mortgage and cant make a substantial down payment. The banks are now foreclosing on the houses that people bought but couldn't afford.
Community Reinvestment Act - Check it out. They voted in restrictions that made the banks accept loans for people with little or no credit, no money down and no or a bad credit history.
These people then (of course) took out the loans and could not pay them back.
Google community reinvestment act and Graham-Leech-Bliley act. Reps and Dems both blame each other but the fact is there have been many men on both sides who stuck their hands in the mess and many men on both sides who tried to warn us yet congress didn't do anything until it was too late.
Yes, during the Carter and Clinton adminstrations they repealed some laws that removed some prtective measures that allowed more low income people to get loans.
Obviously loans they could not pay.
Research Barney Frank and you will get some answers. He basicly forced loans be made to people that could not afford them or they could sue for discrimination.
Barney Frank, Chuck Schumer and Christopher Dodd should be in jail but so should Rick Davis.
