Kathy: Thank you for reminding me of this! The Community Reinvestment Act (CRA) of 1977 was originally intended to "encourage" depository institutions to "meet the credit needs" of the communities in which they operate, including low- and moderate-income neighborhoods, consistent with safe and sound banking operations. CRA went un-enforced under Reagan & Bush 41. Clinton threatened to punish banks who don't comply and removed the "consistent with safe and sound banking operations" requirement. Bush 43 put CRA on steroids, and thus the real estate & mortgage crisis of 2008. Had the federal government left the mortgage loan industry alone, more Americans could afford home. Banks were forced to count welfare benefits as "income" AND to let unrelated people be joint borrowers. When I practiced law I saw nightmare outcomes because of these reckless loan practices. Diane
Wasn't it during the Carter Administration that banks were FORCED to lend mortgage money to people who didn't qualify, most of whom defaulted?
Not everybody SHOULD be a homeowner! That also involves the responsibility for taxes, insurance, and plenty maintenance.
Many people do well to pay rent on time and call landlords when they break something.
Kathy: Thank you for reminding me of this! The Community Reinvestment Act (CRA) of 1977 was originally intended to "encourage" depository institutions to "meet the credit needs" of the communities in which they operate, including low- and moderate-income neighborhoods, consistent with safe and sound banking operations. CRA went un-enforced under Reagan & Bush 41. Clinton threatened to punish banks who don't comply and removed the "consistent with safe and sound banking operations" requirement. Bush 43 put CRA on steroids, and thus the real estate & mortgage crisis of 2008. Had the federal government left the mortgage loan industry alone, more Americans could afford home. Banks were forced to count welfare benefits as "income" AND to let unrelated people be joint borrowers. When I practiced law I saw nightmare outcomes because of these reckless loan practices. Diane
Ah, Robin Hood lives!