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Current Events => Breaking News => Topic started by: Chris_ on August 13, 2013, 09:55:29 AM

Title: New Study Finds CRA 'Clearly' Did Lead To Risky Lending
Post by: Chris_ on August 13, 2013, 09:55:29 AM
Democrats and the media insist the Community Reinvestment Act, the anti-redlining law beefed up by President Clinton, had nothing to do with the subprime mortgage crisis and recession.

But a new study by the respected National Bureau of Economic Research finds, "Yes, it did. We find that adherence to that act led to riskier lending by banks."

Lenders not subject to the CRA, such as subprime giant Countrywide Financial, still fell under its spell. Regulated by HUD, Countrywide and other lenders agreed to sign contracts with the government supporting such lending under threat of being brought under CRA rules.

Housing analysts say the CRA is the central thread running through the subprime scandal — from banks and subprime lenders to Fannie and Freddie to even Wall Street firms that took most of the heat for the crisis.

Obama officials, who are cracking the CRA whip anew against banks, insist the law played no role in the mortgage meltdown.

Investors Business Daily (http://news.investors.com/ibd-editorials-perspective/122012-637924-faults-community-reinvestment-act-cra-mortgage-defaults.htm)
Title: Re: New Study Finds CRA 'Clearly' Did Lead To Risky Lending
Post by: CG6468 on August 13, 2013, 10:01:48 AM
What did play a role in this fiasco then? The ether around us? Alignment of the planets? An alternate, non-parallel universe? Those damned Republicans?

Which entities shelled out the ca$h for this travesty?
Title: Re: New Study Finds CRA 'Clearly' Did Lead To Risky Lending
Post by: Ptarmigan on August 13, 2013, 10:13:29 AM
Not surprised by it.
Title: Re: New Study Finds CRA 'Clearly' Did Lead To Risky Lending
Post by: thundley4 on August 13, 2013, 10:18:36 AM
As a "community organizer" and lawyer, Obama used the CRA to blackmail banks.  The crash was his fault.
Title: Re: New Study Finds CRA 'Clearly' Did Lead To Risky Lending
Post by: CG6468 on August 13, 2013, 11:14:20 AM
As a "community organizer" and lawyer, Obama used the CRA to blackmail banks.  The crash was his fault.

The hell you say!!!!  :racist:

 :lmao: :lmao: :lmao:
Title: Re: New Study Finds CRA 'Clearly' Did Lead To Risky Lending
Post by: Dori on August 13, 2013, 12:57:08 PM
As a "community organizer" and lawyer, Obama used the CRA to blackmail banks.  The crash was his fault.

From Conservapedia's page on Barack Obama

Quote
From 1993-96 he practiced civil rights law including suing Citibank to force them into making subprime mortgages to unqualified minority borrowers.

http://www.conservapedia.com/Barack_Obama
Title: Re: New Study Finds CRA 'Clearly' Did Lead To Risky Lending
Post by: thundley4 on August 13, 2013, 01:08:38 PM
From Conservapedia's page on Barack Obama

http://www.conservapedia.com/Barack_Obama

And he wants to do the same thing again.  He is an idiot bent on destroying the US.
Title: Re: New Study Finds CRA 'Clearly' Did Lead To Risky Lending
Post by: NHSparky on August 13, 2013, 03:01:49 PM
Okay, Democrats, explain this one, if you can:

Borrower A has a 730 FICO score, puts 20 percent down on a mortgage, and has a PITI equal to 28 percent of gross income.

Borrower B has a 580 FICO score, can't qualify for a new vehicle loan, wants to put 0 percent down, and the PITI on a 3-year ARM equal to roughly 80 percent of gross income, until the ARM adjusts in which case it goes above 100 percent of gross.

To which borrower would you allow to have a $500K mortgage?  If you said Borrower A, you're racist!  Because under the CRA, BOTH are equally qualified!
Title: Re: New Study Finds CRA 'Clearly' Did Lead To Risky Lending
Post by: Dori on August 13, 2013, 03:05:55 PM
Okay, Democrats, explain this one, if you can:

Borrower A has a 730 FICO score, puts 20 percent down on a mortgage, and has a PITI equal to 28 percent of gross income.

Borrower B has a 580 FICO score, can't qualify for a new vehicle loan, wants to put 0 percent down, and the PITI on a 3-year ARM equal to roughly 80 percent of gross income, until the ARM adjusts in which case it goes above 100 percent of gross.

To which borrower would you allow to have a $500K mortgage?  If you said Borrower A, you're racist!  Because under the CRA, BOTH are equally qualified!

For real?  B really would qualify?   :o
Title: Re: New Study Finds CRA 'Clearly' Did Lead To Risky Lending
Post by: NHSparky on August 13, 2013, 05:35:18 PM
For real?  B really would qualify?   :o

My ex's FICO was somewhat (but not that much) above it.  Her income was half that of mine, and was buying a house twice as expensive--PITI was, in her case, quite literally 80-85 percent of her gross income.  According to the docs I saw, she qualified for "A" paper.

She lost the house in 2010.
Title: Re: New Study Finds CRA 'Clearly' Did Lead To Risky Lending
Post by: 98ZJUSMC on August 13, 2013, 09:40:54 PM
As in:    "Duh"
Title: Re: New Study Finds CRA 'Clearly' Did Lead To Risky Lending
Post by: Chris_ on August 13, 2013, 09:43:04 PM
As in:    "Duh"
It's a shame this has to be pointed out, as if the cause and effect weren't obviously apparent by 2008.

I've noticed some new subprime commercials on television advertising a 5-year ARM.  The previous ones were 2-years.

No way, no how.  Run like hell.
Title: Re: New Study Finds CRA 'Clearly' Did Lead To Risky Lending
Post by: 98ZJUSMC on August 13, 2013, 09:46:08 PM
As a "community organizer" and lawyer, Obama used the CRA to blackmail banks.  The crash was his fault.

We have understood this for a long, long time.  You'll never get the helmet-children to understand it.

Never.
Title: Re: New Study Finds CRA 'Clearly' Did Lead To Risky Lending
Post by: 98ZJUSMC on August 13, 2013, 09:51:04 PM
It's a shame this has to be pointed out, as if the cause and effect weren't obviously apparent by 2008.

I've noticed some new subprime commercials on television advertising a 5-year ARM.  The previous ones were 2-years.

No way, no how.  Run like hell.

Because it plays to the idiots.    The Obamaphoners.  They are completely incapable of understanding the detriment.

We have become a nation of stupid, compliments of pandering (D)emocrat politicians and feckless (R)epublican pussies....
Title: Re: New Study Finds CRA 'Clearly' Did Lead To Risky Lending
Post by: thundley4 on August 13, 2013, 10:02:19 PM
Obama also wants to push 30 year mortgages again.
Title: Re: New Study Finds CRA 'Clearly' Did Lead To Risky Lending
Post by: Chris_ on August 13, 2013, 10:03:31 PM
I thought 30-year mortgages were still the norm.  At least it was when there were responsible people buying houses and responsible people in charge of approving loans.
Title: Re: New Study Finds CRA 'Clearly' Did Lead To Risky Lending
Post by: thundley4 on August 13, 2013, 10:17:08 PM
I thought 30-year mortgages were still the norm.  At least it was when there were responsible people buying houses and responsible people in charge of approving loans.

I thought so too, but he's talked about it like a new thing. 30 year fixed rate.
 http://business.time.com/2013/08/08/president-obama-defender-of-the-30-year-fixed-rate-mortgage/
Title: Re: New Study Finds CRA 'Clearly' Did Lead To Risky Lending
Post by: Chris_ on August 13, 2013, 10:22:15 PM
I thought so too, but he's talked about it like a new thing. 30 year fixed rate.
 http://business.time.com/2013/08/08/president-obama-defender-of-the-30-year-fixed-rate-mortgage/
Maybe that's because he bought his Chicago home from Tony Rezko and doesn't know his ass from a hole in the ground.
Title: Re: New Study Finds CRA 'Clearly' Did Lead To Risky Lending
Post by: thundley4 on August 13, 2013, 10:28:31 PM
Maybe that's because he bought his Chicago home from Tony Rezko and doesn't know his ass from a hole in the ground.

Probably never had a mortgage on it either.
Title: Re: New Study Finds CRA 'Clearly' Did Lead To Risky Lending
Post by: obumazombie on August 13, 2013, 11:31:00 PM
This is reparations in sheep's clothing.
Title: File this under DUH! The economy isn't Bush's fault
Post by: Hathcock on August 14, 2013, 08:06:11 AM
Quote
A new study from the widely respected National Bureau of Economic Research released this week has confirmed beyond question that the left’s race-baiting attacks on the housing market (the Community Reinvestment Act–enacted under Carter, made shockingly more aggressive under Clinton) is directly responsible for imploding the housing market and destroying the economy.

http://gopthedailydose.com/2013/08/14/obama-can-no-longer-blame-bush-study-confirms-economy-was-destroyed-by-democrat-policies/
Title: Re: File this under DUH! The economy isn't Bush's fault
Post by: obumazombie on August 14, 2013, 10:17:08 PM
http://gopthedailydose.com/2013/08/14/obama-can-no-longer-blame-bush-study-confirms-economy-was-destroyed-by-democrat-policies/
I posted your link, and the OP's link in my other forum. It won't be long before the libs start flaming them.