Fannie Mae and Freddie Mac, the failed mortgage giants, and the Community Reinvestment Act, a law passed during the Carter administration, have they hurt the housing and banking industry? The CRA, which was amended in the 1990s and this decade, requires banks to make more efforts to do so. These efforts include waving credit checks and proof of employement. All this in order to meet a quota set by Congress for bansk to be given ratings of being 'minority friendly'. If they were not making these loans. These banks became target of minority groups.
Asked by Anonymous at 8:29 AM on Feb. 15, 2010 in Politics & Current Events
Answer by LoriKeet at 8:38 AM on Feb. 15, 2010
Answer by Anonymous at 8:39 AM on Feb. 15, 2010
Answer by Farrahann at 8:48 AM on Feb. 15, 2010
Farrahann, unfortunately banks were pressured by Congress/CRA (both Clinton and Carter) to increase the number of loans they made. This pressure included making loans more 'accessible' and 'losening' restrictions. Add to that Bush's minority/amnsety inititatives. (One of the key areas he lost my 04 vote) Despite some bipartisan, mostly Republican efforts to tighten up these programs~they were halted by the Democrats in majority of Congress. Many Democrats fail to acknowledge this because Barney Frank is head of the oversight committee who continued to defend the actions of the banks. He even brought minority leaders to testify how great the program was working to give minorities the "American Dream". This is another government intervening social entitlement issue that went horribly down hill and is costing Americans dearly. African Americans and Illegal Foreclosures are among the highest % of foreclosures.
Answer by grlygrlz2 at 9:04 AM on Feb. 15, 2010
Answer by mancosmomma at 9:05 AM on Feb. 15, 2010
Answer by Carpy at 9:09 AM on Feb. 15, 2010
Answer by PhoenixFire at 9:33 AM on Feb. 15, 2010
Answer by motherofhope98 at 9:34 AM on Feb. 15, 2010
Answer by meriana at 9:38 AM on Feb. 15, 2010
Answer by Anonymous at 9:45 AM on Feb. 15, 2010
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