11 April 2009

CRA

Just a quick note: if you hear conservatives blame the Community Reinvestment Act for the housing crisis, it's bullshit.  I am hearing a lot of this sort of rhetoric: "If lenders weren't forced to make risky loans for the sake of political correctness, they wouldn't have been in this mess."  The statistics don't bear this out, of course, since 75% of subprime loans in trouble were not subject to the CRA.

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