The Community Reinvestment Act (CRA) — passed in 1977 by the Democratically-held House and Senate, and signed into law by President Carter — required banks and financial institutions to loosen credit rating standards on those in poor, minority neighborhoods. President Clinton further strengthened the law in the 1990s by penalizing banks and denying mergers to those institutions that did not meet quotas on loans to poor and minority customers.
A 2012 study found that CRA was a major contributor to the 2007-2008 financial crisis, and now President Obama wants to ramp it up. The Washington Post highlights the controversy:
Obama pledged in his State of the Union address to do more to make sure more Americans can enjoy the benefits of the housing recovery, but critics say encouraging banks to lend as broadly as the administration hopes will sow the seeds of another housing disaster and endanger taxpayer dollars.
“If that were to come to pass, that would open the floodgates to highly excessive risk and would send us right back on the same path we were just trying to recover from,” said Ed Pinto, a resident fellow at the American Enterprise Institute and former top executive at mortgage giant Fannie Mae.
It is often said that the biggest mistake one can make in life is not learning from one. It seems that the liberals have not learned from the mistakes of the past, and have us steered directly towards another fiscal cliff.
Source: Washington Post
I meet him he is dead. He doesn’t have enough protection.
OBAMA DOESN’T CARE HE WILL FINISH THE JOB AND DESTROY AMERICA SO I SAY AGAIN THANK ALL YOU AMERICANS WHO VOTED FOR OBAMA.YOU HELPED HIM.
Another idiotic proposal.
That’s the asswipes plan 2 destroy america before his term is over.
Treason for obumba. Treason.Take back our country
dumber than dumb
This is not his country
Someone get him to stop crashing our lives!!!
Really? Obama is gone guys. All the excuses are gone too. Both Houses of Congress are now Republican, Supreme Court Republican control for last 8 years, next President Republican guaranteeing a super majority (7 out of 9 Supreme Court Justices, first time in history). No more liberals to blame. How are they going to explain to the American People why Roe vs Wade is not reversed, IRS is not closed, no passage of “flat” tax, & no repeal of Obama Care etc. It will be entertaining. The dog just caught the car.