Democrats want to EXPAND Community Reinvestment Act

[SonsofLiberty]

I am speechless, the bodies aren't even cold yet and the Dems seem to want to expand this train wreck.

http://www.politico.com/news/stories/0309/20129.html

"Under CRA, banks are subject to regulatory review of the level of lending, investments and services in low- and moderate-income neighborhoods traditionally underserved by lending institutions. The banks are then given a grade on how well they’re doing. Bad grades can lead regulators to deny bank requests for mergers, acquisitions or expansion of services."

(for those that continually say the CRA has no teeth and did not force lenders to make certain loans)

[spinach]

the liberals plan of "easy credit" caused this mess.
And what do the liberals want to do? fix the mess with more "easy credit".
the liberal democrats in charge are not very bright.

[SonsofLiberty]

the liberals plan of "easy credit" caused this mess.
And what do the liberals want to do? fix the mess with more "easy credit".
the liberal democrats in charge are not very bright.

I wonder who their scapegoat will be this time? My guess...greedy capitalism

[SonsofLiberty]

bump

[johnrocks]

your right, greedy Capitalism gets blamed, I hear people say that and it sickens me. I've heard Republicans such as McCain say that, totally unforgivable, they say that and they lose my support from that second on.

[SonsofLiberty]

your right, greedy Capitalism gets blamed, I hear people say that and it sickens me. I've heard Republicans such as McCain say that, totally unforgivable, they say that and they lose my support from that second on.

Capitalism has brought so much to the world and yet leaders and citizens keep wanting for a central planning system. I understand the leaders desire.

BTW, welcome back.

[zantax]

your right, greedy Capitalism gets blamed, I hear people say that and it sickens me. I've heard Republicans such as McCain say that, totally unforgivable, they say that and they lose my support from that second on.

Oh, a fan of modern western civilization huh? Probably love central heat and air conditioning too.

[SonsofLiberty]

Oh, a fan of modern western civilization huh? Probably love central heat and air conditioning too.

and probably doesn't give a hoot about his global footprint ;)

[johnrocks]

Capitalism has brought so much to the world and yet leaders and citizens keep wanting for a central planning system. I understand the leaders desire.

BTW, welcome back.

Thanks, I can't understand people trusting government, Capitalism is as close to a perfect system as you can get when left alone, it rewards those who play by the rules and punishes the hell out of those who do practice reckless greed and abandonment.

[johnrocks]

Oh, a fan of modern western civilization huh? Probably love central heat and air conditioning too.

gotta have my indoor plumbing....just gotta.:mrgreen:

[SonsofLiberty]

Thanks, I can't understand people trusting government, Capitalism is as close to a perfect system as you can get when left alone, it rewards those who play by the rules and punishes the hell out of those who do practice reckless greed and abandonment.

And we are NOT living under a capitalist system anymore in this country. It may be quasi-capitalistic, but it is becoming more and more akin to what exists in fascist economies. Some may call it Listian economics, others corporatism, either way it is more like central planning than anything else.

[SonsofLiberty]

gotta have my indoor plumbing....just gotta.:mrgreen:

I bet there are times when others wish you didn't ;)

[OIVORY]

Well if you listen the media, the CRA isn't the problem.

Under the excellent leader of Franklin Raines....

Yeah, clearly the LACK of CRA regulating is the problem. Couldn't be the stupid regulations put in play by the CRA, gotta be the LACK of regulations which didn't prevent the banks to give loans that would default....

[SonsofLiberty]

Well if you listen the media, the CRA isn't the problem.

Under the excellent leader of Franklin Raines....

Yeah, clearly the LACK of CRA regulating is the problem. Couldn't be the stupid regulations put in play by the CRA, gotta be the LACK of regulations which didn't prevent the banks to give loans that would default....

stop being logical would you?

[camp_steveo]

Be right back...I gotta go blow my ****ing brains out now....lol

[SonsofLiberty]

Be right back...I gotta go blow my ****ing brains out now....lol

hold on....don't you want to wait for Obama Care first?

[johnrocks]

And we are NOT living under a capitalist system anymore in this country. It may be quasi-capitalistic, but it is becoming more and more akin to what exists in fascist economies. Some may call it Listian economics, others corporatism, either way it is more like central planning than anything else.

Yep, my Brother who lives in New Mexico called today and we were talking about this being more of a quasi capitalistic system, I really think we're headed more toward corporate fascism in a lot of ways than socialism, the government is in partnership with so much over the years with private entities from banks and mortgages to now AIG.

[johnrocks]

hold on....don't you want to wait for Obama Care first?

blowing his brains out is quicker,less costly and more efficient.:whistle:

[camp_steveo]

hold on....don't you want to wait for Obama Care first?

I guess so. For now: :wall::doh:

[camp_steveo]

blowing his brains out is quicker,less costly and more efficient.:whistle:

lol...and less messy.... in my case that is...lol

[SonsofLiberty]

Yep, my Brother who lives in New Mexico called today and we were talking about this being more of a quasi capitalistic system, I really think we're headed more toward corporate fascism in a lot of ways than socialism, the government is in partnership with so much over the years with private entities from banks and mortgages to now AIG.

and with good reason, this is the way China is going and you can bet our leaders will want to emulate their successes

[wildcat87]

http://www.fdic.gov/news/news/speeches/archives/2008/chairman/spdec0408_2.html


I think we can agree that a complex interplay of risky behaviors by lenders, borrowers, and investors led to the current financial storm. To be sure, there's plenty of blame to go around.

However, I want to give you my verdict on CRA: NOT guilty.

Point of fact: Only about one in four higher-priced first mortgage loans were made by CRA-covered banks during the hey-day years of subprime mortgage lending (2004-2006). The rest were made by private independent mortgage companies and large bank affiliates not covered by CRA rules.

You've heard the line of attack: The government told banks they had to make loans to people who were bad credit risks, and who could not afford to repay, just to prove that they were making loans to low- and moderate-income people.

Let me ask you: Where in the CRA does it say to make loans to people who can't afford to repay? Nowhere!

And the fact is, the lending practices that are causing problems today were driven by a desire for market share and revenue growth ... pure and simple.

http://www.occ.treas.gov/ftp/release/2008-136.htm


Comptroller of the Currency John C. Dugan said he categorically disagrees with suggestions that the Community Reinvestment Act is partly responsible for the ongoing credit crisis.

“CRA is not the culprit behind the subprime mortgage lending abuses, or the broader credit quality issues in the marketplace,” Mr. Dugan said in a speech to the Enterprise Annual Network Conference.

“Indeed, the lenders most prominently associated with subprime mortgage lending abuses and high rates of foreclosure are lenders not subject to CRA,” he added. “A recent study of 2006 Home Mortgage Disclosure Act data showed that banks subject to CRA and their affiliates originated or purchased only six percent of the reported high cost loans made to lower-income borrowers within their CRA assessment areas.”

I'm going to assume you guys are going to call these folks partisan.... you should probably look at their bios first. You MAY be right.

[SonsofLiberty]

http://www.fdic.gov/news/news/speeches/archives/2008/chairman/spdec0408_2.html

http://www.occ.treas.gov/ftp/release/2008-136.htm

I'm going to assume you guys are going to call these folks partisan....

I'm assuming you are going to say something about those links rather than just posting them?

[camp_steveo]

http://www.fdic.gov/news/news/speeches/archives/2008/chairman/spdec0408_2.html

http://www.occ.treas.gov/ftp/release/2008-136.htm

I'm going to assume you guys are going to call these folks partisan....

I aint saying the CRA caused the entire mess. However, it did play a big part in forcing banks to make non-traditional loans.

[zantax]

and with good reason, this is the way China is going and you can bet our leaders will want to emulate their successes

I guess they didn't notice that China economy is only the size of Los Angeles'.

[wildcat87]

I'm assuming you are going to say something about those links rather than just posting them?

I was adding it as you were typing this.

[SonsofLiberty]

I guess they didn't notice that China economy is only the size of Los Angeles'.

nope they will just look at the rate of growth and the amount of power their leaders wield.

[wildcat87]

I aint saying the CRA caused the entire mess. However, it did play a big part in forcing banks to make non-traditional loans.

The head of the FDIC under Bush (and now Obama) disagrees with you. Her bio is pretty interesting.

[SonsofLiberty]

I was adding it as you were typing this.

I apologize. I will add that I disagree.

The advent of these types of loans AND MORE IMPORTANTLY Fannie and Freddie lowering their standards of what they would buy, influenced by Congress, led to a strong secondary market for lower quality loans. This led to the "bundling" of loans we all heard of.

While many do not have clean hands in this problem, our beloved government was the one who got the ball rolling.