T Nation

CRA Expansion


AKA, let's burn down the economy all over again!


Something tells me my working family won't be a beneficiary.

Isn't 'vibrant' an MSM code-word for "crime-plagued"?

Edit: Whoops, forgot to include the link to Barney Frank's push for more CRA on the Hill:

Uh, it's not arguable at all.

Didn't we just have 8 years of the opposite of redlining, euphemistically called "predatory lending"? How'd that work for us?

Now, this is a credit expansion that will surely cause inflation. And once mortgage/small business loan defaults start happening, we'll be worse off than we are now.


you have internet access. you have access to basic banking services.

of course youre not a beneficiary.

What exactly do you not like about this? based on their website it seems they offer counsel and refinancing and thats about it.


What do they get in return?




Let's see:

Obama was inaugurated in January and it's now September. In that time we've seen enacted or pursued.

3 dozen czars. Some of which are rabidly anti American.

An astronomical largely opposed "stimulus"/liberal spending package.

What's in effect a takeover of the nations largest banks, insurance companies and 2 of the big 3 automobile manufacturers.

A nationalized medical/health industry and don't even bother telling me that's not what they want.

Cap and trade which amounts to federal control of the production of energy and don't even bother trying to tell me that's not what that is either.

Now today, what amounts to a takeover of all student loans and an expansion of the CRA?

I'm sure I missed something and I'm sure there's more to come.

Anybody who doesn't see what's going on here is insane, flat stupid or in the most tragic case of pathological denial in human history.


From your link:
The bill's purpose is "to close the wealth gap in the United States" by increasing "home ownership and small business ownership for low- and moderate-income borrowers and persons of color."

We sure do learn fast, don't we?


yea i see no reason why it should be expanded more than what it is.

but to say the CRA was a major player in the mortgage crisis? anyone have data on this? All ive seen is the federal reserve analysis which pretty much said CRA loads were small fish and preformed at an equal level to other sub primes. 'Course they aren't likely the most unbiased of sources, but i have yet to see any data pointing to poor people loan programs taking a major share of the crisis.


In comes the new boss, same as the old boss.


Here you go:

There's tons of data there. This one's pretty self-explanatory:

What happened was not just CRA commitments per se, but banks that didn't give out CRA loans weren't allowed to grow and acquire other banks. As a result, the most "minority friendly" banks like WaMu grew to gargantuan proportions by acquiring the banks that saw the folly in lending to the un-creditworthy.

Credit unions were exempted from CRA rules, but Barney Frank's closing that loophole.

The CRA isn't solely to blame by any means, though. GWB wanted to expand minority home ownership, so he appointed people that would make that happen. Angelo Mozilo (Freddie Chairman) was a big proponent of closing the wealth gap also. The east coast banksters also colluded with west coast mortgage brokers to turn those loans out like there was no tomorrow so that they could be packaged and sold overseas.

The ironic thing is that the minority mortgage meltdown has led to the biggest destruction of minority wealth in this country's history.