8537
VIP Member
Ame®icano;4105177 said:Ame®icano;4086254 said:I don't need to dispute the truth. GSE repackaged loans were less likely to default.
Only thing is CRA was forcing banks to give bad loans while using GSE's to buy them out, covering up for it, then they were cooking books and lying that everything is OK.
Except....Loans issued by CRA-regulated institutions account for less than 20% of the defaulting subprimes.
The CRA can't force Ameriquest or nondepository branches of Countrywide to even comply with basic lending standards (nevermind the fact that no bank was ever forced to make a loan - in fact, the banks were begging the GSE's to allow them to make loans.)
You keep saying that banks were never forced into giving loans, when you know that's not true. In the post #67 KissMy provided a YouTube clip of Andrew Cuomo, Clinton's HUD Secretary talking about loan affirmative action, based on Clinton's CRA law changes. With that law government was forcing banks into giving loans and that IS a fact.
No, I keep saying banks weren't forced to give loans to unworthy borrowers because they weren't. The CRA dealt with the geography of loans, not individual loan standards. All loans issued by CRA-regulated institutions had to meet conforming requirements - which is why nondepository institutions gained such a huge share of the mortgage market, by offering mortgage options that did not conforming standards.