The housing lawsuit wasn't about "forcing banks to make loans" or lowering requirements - that's the lie. It?...was proven in a court of law that banks were denying QUALIFIED borrowers, with the same credits scores, being denied loans because they lived in redlined minority areas. It's all a matter of public record - do you think fake right wing news will ever admit that? |
Nothing in the CRA language mandates that banks make unprofitable loans. Preventing redlining is the intent of the law, which is where a qualified borrow is denied because of the area of town they live in, as you indicated.
Actual oversight text in the law:
{SEC. 804. (a) IN GENERAL.--In connection with its examination of a financial institution, the appropriate Federal financial supervisory agency shall--
(1) assess the institution's record of meeting the credit needs of its entire community, including low- and moderate-income neighborhoods, consistent with the safe and sound operation of such institution}
The financial crisis, on the other hand, was caused by unregulated mortgage originators making liar loans, converting the loans into opaque securities fraudulently rated AAA (as a result of the conflict of interest in the ratings agencies), and then selling them to suckers.
Another free-market failure.
No that is not true. They gave loans to under qualified people and gave government backing so the banks wouldn't be so nervous about it.
NY TIMES 1999
In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.
The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.
So you would invest your money to build a house in the war zones of Detroit, or Chicago knowing full well if the person defaults you will have to sell the house on the open market to whom!
there is a lot more to lending just because someone wants it and has a good credit score like can you resale it in case of default.
Bullshit.. I've worked for banks for 15 years. They don't DENY profits because of someone's skin color, they deny loans because of the persons inability to pay. It's all OPINION of the government.
Faced with massive fines, what is the bank to do? Watch this video Joe.
BACKGROUND Info on Clintons "National Homeownership Strategy"
http://archives.clintonpresidentialcente...
http://www.presidency.ucsb.edu/ws/index....
Clinton HUD Secretary 1998 (moments after announcing a record high discrimination settlement) Video Link Below
""To take a greater risk on these mortgages...yes. To give families mortgages they who they would not have given otherwise?...yes."
Mr. Cuomo is then asked if this people in this group could have gotten the loans at all in the first place. In a telling response, he answers:
"They would not have qualified, but for this AFFIRMATIVE ACTION on the part of the bank...yes."
Mr. Cuomo then confirms for a reporter that the affirmative action is indeed for minorities and that he expects the default rate to be higher than the rest of the portfolio:
"It is...by income it is mostly by minorities...yes."
TRANSLATION GIVE LOANS TO PEOPLE WHO CAN'T PAY THEM OR BE FINED FOR DISCRIMINATION !
VIDEO HERE
http://www.youtube.com/watch?v=ivmL-lXNy...
NOt about lowering requirement ? Read this.
Fannie Mae Eases Credit To Aid Mortgage Lending
WASHINGTON, Sept. 29, 1999 — In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.
The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans.
***** Fannie Mae officials say they hope to make it a nationwide program by next spring. ***
http://www.nytimes.com/1999/09/30/business/fannie-mae-eases-credit-to-aid-mortgage-lending.html
Nobody should ever be able to get a 90% loan on a house. That's just asking for trouble.
Joe. What's up, dude? Right wing news? Come on. It was reported, right? Or you wouldn't know. If you trace it back, it was a Demoncrat president & Demoncrat Congress that gave the wink.
Do you have a source?
I've read a lot of your questions, many of them claim things that can be easily contradicted with actual figures.
So please source your claim.
no -- the conservative racists will ot admit it.
This is why there is no point in trying to "work on a bipartisan basi" with conservatives. They are lying trash. And we need to drop the rhetoric about "civility." They are the source of the polarization in American politics and we need to put the blame where it belongs -- on their doorstep.
