Toro
Diamond Member
Most of the subprime loans were to middle and upper income buyers. Most of them were incurred in expensive areas. For example 90% of all mortgages written in San Diego in 2006 were subprime loans.
The most toxic subprimes and the worst price runups (b/c the two are connected) occurred in traditionally "poor" "minority" neighborhoods such as Miami, Bradenton, Naples, and Las Vegas. hotbeds of poverty, I tell ya!
If you believe in the efficacy of the market, if the CRA truly was the cause of the financial crisis, the home prices that would have gone up the most, then crashed the most and had the highest rates of default would have been in CRA areas, none of which happened.
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