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Originally Posted by kvmj  What you quote above is entirely false. The standards under the Community Reinvestment Act are quite rigid. Applicants must have the ability to repay. They can have had some credit problems but they would have to have been cleareds. There are absolutely no fees allowed, not even real estate commissions. This program involves is sponsored by the larger banks and might comprise 1/10 th. of 1% of their mortgage lending.
Banks did come up with the loose underwriting standards all on their own. It has absolutely nothing to do with government. Your assertions are absurd. |
Logically WHY would any bank do something like this to themselves? Sure the banks tried to pass off these loans into portillos(stock market) and also to other banks. Please explain why MOST banks have the same trouble. This problem is not just a couple of banks.
There are 52 major banks right now that is in the negative, the Federal Reserve has not release the list.
Our government does regulates the banks dealing with how many loans to minorities... It is not strict the only way to let minorities plus lower income was to lossen the standards.
Otherwise unless you can prove that ALL these banks just dreamed this whole thing up I still think it is the "big" government hand in matters that should have been let to the banks.
There are lots of news article since the first Feb that are saying the same thing.