I cannot believe that you can still try to blame Bill Clinton for what is going on today--Clinton left office in 2000. It is now 2008. Get a reality check, son.

Gee, speaking of correct information, the CRA was enacted in 1977 and had nothing to do with Clinton, or did it have anything to do with the current mess--except for the modifications made by Bush which weakened it.
Check your facts, Rick.

Rick,

If you do a little research, you'll find the Community Reinvestment Act had nothing to do with this bust. First and foremost, that Act only applies to depositories. Most of the lenders in the mortgage industry to not meet this requirement, and thus it's a moot point. However, you'll also find this Act EXPLICITLY states that banks should make loans in a financially sound manner. And could you please tell me what the specific requirements are for DEPOSITORIES to maintain for CRA to non-CRA ratios for CRA loans (that's right, there are none).

Do some research and think independently - what you'll find is the 2003 Bankruptcy Act played a much larger role in this whole deal. By taking buyer protections out of the equation through mandatory counseling periods, lenders saw very little risk - and great reward through higher interest rates - as they could now foreclose on homes they previously could not. Unfortunately, because they played such games with appraisers and RE agents alike, there was an artificial price run-up in the housing market which inevitably had to collapse as it disproportianately outpaced income levels -- you have to pay for something eventually, right?

So this is now a crisis because instead of just individual buyers being hurt by foreclosures, banks are feeling the pain through their poor investments. The government did not mandate 100% financing, ARM's or other exotic loans or accepting loans without income verification - the industry voluntarily pursued these out of greed to qualify people for larger purchases than which they truly qualified. This is a matter of "free market" with little regulation rather than one of heavy regulation as you suggest.

Might want to tune into something other than Fox News for your information.

You're almost on the right track...the Community Reinvestment Act actually goes back to the Carter administration.
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rick said...
Wow what a bunch of crap. Calling the Community Reinvestment Act Clinton Bust the "Bush Bust" gee I wonder what side you lean to in politics?
Please if you are writing for all, either try to keep your personal feelings out of the articles or get the correct information.

HEY RICK - It's dark out, the street lights are on, & I think I hear your mother calling you....Riiiiiickkkk, oh Riiiiiickkkk, time to stop playing and come in......

I think it's YOU who should get your info correct. As others have replied, the Community Reinvestment Act had nothing to do with Clinton. A little research before posting would have done you good.....just more hot air coming from an uninformed blogger.

RICK YOUR NOT VERY BRIGHT ARE YOU?

AT LEAST THE COUNTRY DIDN'T GO IN THE TOILET DURING THE CLINTON ADMINISTRATION. LET'S GET THE FACTS STRAIGHT!

The truth is that banks were pressured by Obama's buddies at ACORN and other left-wingers to give loans to minorities and low income people for homes that in many cases they could not afford-home ownership is expensive beyond just the mortgage. That opened the floodgates with so-called no documents loans and a variety of other schemes to garner sales commisions and all the other fees such as appraisals, title clearances, escrow fees etc.and fraud abounded. Yes, individuals of course were also responsible as many attempted to make a fast buck by turning over property purchases in a rising market.
You can thank all government regulators for this massive failure with special credit to Senator Chris Dodd (D) and Rep.Barney Frank (D) for denial at the 2004 hearings that were to investigate what most of us already knew was going on that there was any problem! Fannie Mae also lied about the looming disaster-of note also is the fact that Frank had a long homosexual relationship with a Fannie Mae employee. Dodd of course received a special mortgage rate from his friend at Countrywide.
Senator John McCain issued a written warning in 2005 about this impending disaster but it was ignored.
There is plenty of blame to go around but I suggest some of the people who comment on this issue do a little research and check sources other than the major far left media that fails today to pursue any issue that will indict liberal politicians.Ther is of course a lot more to this story but not enough room here to state it all.

Thank you Rick. I was thinking the same and I am getting fed up with Aol writers who are so compelled to shove their personal opinions into every dull article they write.

My sentiments exactly. This is what has become of the once proud career of journalism. The editors are making a buck more an hour than the writers...and the writers are at minimum wage. Sensational headlines, (truth be damned), are the standard not just in electronic media, but also print.

Rick and Champ have it right, 'cause they have connected ALL of the dots. Sure, the CRA was originated under the Carter admin., but it was significantly altered under the Clinton admin.. Then besides McCain's introduction of a bill to strengthen regulation of the CRA (which the Dem Congress refused), Bush made 17 attempts to inform Congress of the looming disasters due to CRA, Fannie Mae and Freddie.

So, before you put your ignorant and biased, partisan, criticisms out here Steve and Attorney, why don't you get yourselves fully informed? Try doing a little reading instead of just listening to TV.

Well said!

That's why they do repairs at night. Less site traffic.

It's the stupid "shoppers" that trampled someone to death!!
How stupid is the U.S. consumer!!

I'd say your attitude is representative of everything that's "wrong with this country."
Wal Mart is the largest employer in the country next to the federal government yet I bet you have no problem with the governments "growth!"