Do people really think that Bankers wanted to make risky loans or that they had to make thier CRA mandates?
Wall Street bankers were accused of “Redlining” loans for mortgages by only giving loans to people who’s credit and income assured that they could pay them back….Washington drafted the Community Redevelopment act in 1977 to stop this and they went full force with it in 1993 to make banks set aside a least a certain number of loans to lower credit scores and lower income levels and tracked them by giving banks credits towards annual CRA goals…This practice became known as drafting “Subprime” mortgages….Then in 1998 (Under Clinton) Fannie Mae and Freddie Max began securitizing these loans by cutting them up and selling them as bonds which infected the financial system…The original Community Reinvestment Act was a Democrat tool for re-election when they announced that they were going to make sure that anyone could qualify for a home loan…..
This was all back in the 90’s…I was offered a sub prime loan in 1998 but passed on it and went with a relatively high fixed rate loan on a condo….
Now that the roof has falllen in the writers of the Act Chris Dodd Henry Waxman and it’s proponents Barney Frank…Are all on the panel that is calling the Wall Street’s bankers…irresponsible predators who destroyed the economy.
So when Washington is blaming Wall Street for foolish business practices…does anyone really know the back story that these Wall Street bankers didn’t even want to give out these loans in the first place and they had to to reach Federal CRA mandates?
HOW THE HELL ARE THEY GETTING AWAY WITH THIS AND HOW THE HECK ARE PEOPLE NOT PUTTING THE PIECES TOGETHER?