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Originally Posted by kvmj  You have given me a highly partisan screed. The bulk of these subprime loans went to white people. A lot went to speculators.
CRA mandates that banks not redline. It does not force any lending institution to make loans to unqualified borrowers. It never has. |
It is just not only this policy but lots of others as well. This mess is the result of
many government intervention policies. The Federal Reserve leaving interest rates way low (Alan Greenspan years) also plays a part. The only reason banks were able to loan money on questionable mortage loans is because they could pass off the loans to Freddie and Frannie.
Everytime the government tries to set up policy someone always loses..usually the US taxpayer.