community reinvestment act: Mortgage Mess Part 8--"Affordable" Mortgages Led to Un-affordable Home Prices
- 10/23/08 07:51 AM
"Affordable Mortgages" Led to Un-Affordable Home Prices In 1999 David Glenn the President and COO of Freddie Mac "confessed his company was pushed by a federal agenda." (Source: Drew Zahn at World Net Daily 9/19/08) Here are 3 direct quotes from Mr. Glenn according to Drew Zahn- •· "The mortgage industry intends to pursue minorities with greater intensity as federal (CRA) regulators turn up the heat to increase home ownership." •· "The federal government in the meantime has increased pressure on lenders to seek out minorities, as well as low-income groups and borrowers with poor credit histories." •· "Fannie Mae recently reached … (0 comments)
community reinvestment act: Mortgage Mess Part 7--The CRA on Steroids
- 10/22/08 09:57 AM
CRA on Steroids In 1994 President Clinton rewrote the Community Reinvestment Act or CRA of 1977. It was called the National Homeownership Strategy. Why? To help more "deserving" minority families buy a home-a noble idea. At this time the national homeownership rate was about 64% according to The Denver Post (Source: The Blame Game by Greg Griffin 10/5/08). In 1995 after Republicans took control of Congress, Clinton ordered Treasury Secretary Robert Rubin to re-write the rules of the CRA. Whereas the CRA was initially approved by Congress in 1977, at this time President Clinton bypassed Congress and took control himself; knowing … (2 comments)
community reinvestment act: Mortgage Mess Part 6--Great Intentions
- 10/21/08 03:06 AM
Great Intentions Now we begin to uncover the fifth party responsible for this Mortgage Mess and this party has the most fault in my opinion. It is our elected officials and this goes all the way back to 1977. In 1977 President Carter signed into law the Community Reinvestment Act or CRA, which was a noble idea to end "redlining". Redlining is when banks open branches in low-income or minority areas; but do very little lending in the area, starving the neighborhoods of capital and the ability to buy homes. The CRA was written to force banks to lend to borrowers … (0 comments)
"Affordable Mortgages" Led to Un-Affordable Home Prices
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