The 1977 Community Reinvestment Act, signed by Jimmy Carter (that was beefed up by Bill Clinton), is at the root of the current Mortgage Crisis/Wall Street Debacle.
While most of the attention is on the current credit freeze and bailout, one thing is getting little notice: The Community Reinvestment Act (CRA).
It was through this Act that the subprime mortgage loans were made to people who didn't qualify for a conventional loan (with downpayment, fixed rate, adequate income, etc.). What's to stop this problem from occurring again or continue to occur unless the Community Reinvestment Act and all other subprime loan mandates are repealed?
So far, I've seen no action in Congress in ridding us of these mandates. We all know who controls Congress, don't we?
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