Does It Surprise You To Know That The Man Who Selected Kerry’s Vp Earned $50 Million At Fannie Mae?

Try the Community Reinvestment Act of 1977 and then Clinton’s CHANGES IN***1995*** that gave rise to no doc loans and subprime mortgages to get minority and low income people into homes.
Nothing to do with it? And how did the subprime craze begin?Community Reinvestment Act encourages banks and thrifts to make loans to riskier customers.
” According to an article in The Atlanta Journal-Constitution (11/04/07) titled “Black Atlantans often snared by subprime loans,” by Carrie Teegardin, a national study of credit scores, not just mortgage loan applicants, found that 52 percent of blacks have credit scores that would classify them as subprime borrowers compared with 16 percent of whites.
Many lenders did make loans to people who had no realistic ability to pay them back. But that doesn’t qualify as fraud, although there might have been a bit of exuberance in the repackaging of the mortgages into securities and selling them to investors. Some argue that many borrowers defrauded the banks by misrepresenting their income, the so-called “no doc” loans or “liar’s loans”. “http://www.townhall.com/columnists/Walte…
Not saying bank’s don’t hold accountability but the CRA is where it all begin.
Good try though.
Gramm-Leach-Bliley – CRA Amendments:
Sunshine Requirements
* Requires full public disclosure of all CRA agreements.
* Requires each bank and each non-bank party to a CRA agreement to make a public report each year on how the money and other resources involved in the agreement were used.
Small Bank Regulatory Relief
* Applies to small banks and savings and loans, with no more than $250 million in assets.
* Small banks and S&Ls having received an outstanding rating at their most recent CRA exam shall not receive a routine CRA exam more often than once each 5 years.
* Small banks and S&Ls having received a satisfactory rating at their most recent CRA exam shall not receive a routine CRA exam more often than once each 4 years.
Preservation of Current Law
* Clarifies that nothing in the act repeals any provision of the CRA.
CRA Compliance Check
* The Federal Reserve may not permit a company to form a financial holding company if any of its banks or S&Ls did not receive at least a satisfactory rating in its most recent CRA exam.
* No bank or financial holding company may commence new activities authorized under the Gramm-Leach Act if any bank, or bank affiliate of a financial holding company, received less than satasfactory rating at its most recent CRA exam.
Federal Reserve Study
* Directs the Federal Reserve Board to conduct a study of the default rates, delinquency rates, and profitability of CRA loans.
Treasury Study
* Directs the Treasury, in consultation with the bank regulators, to study the extent to which adequate services are being provided as intended by the CRA.
CLINTON CHANGES in 1995:
The 1995 revisions were credited with helping to substantially increase the amount of loans to small businesses and to low- and moderate-income borrowers for home loans. Part of the increase in the latter type of lending was no doubt due to increased efficiency in the secondary market for mortgage loans. The revisions allowed the securitization of CRA loans containing subprime mortgages. The first public securitization of CRA loans started in 1997. [1]
Don’t forget James A. Johnson multimillion dollar payout from Fannie Mae and he led Obama’s VP search.