| What it Aint... I just want to say one thing... I know this is way late, but perhaps someone is still listening:
Don't buy the "CRAs" and "Fannie & Freddie" and their being forced to lend to uncreditworthy minorities brought on this credit crunch crap.
Facts do not support these assertions.
The subprime mortgage industry imploded starting in 2006 and most of those lenders no longer exist. Most minority borrowers got subprime mortgages, even if, and sometimes, particularly if they could actually qualify for prime mortgages - its called steering for the highest buck.
CRAs are typically your normal banks lending money with lots of strings, like homebuyer education... these loans didn't do the damage.
What F&F bought were the Alt-A mortgages and a whole crapload of ARMs that were sold to folks in high-priced real estate markets where they couldn't afford a home without an ARM. And we're talking something like 50% of new construction being financed this way in the last couple years... so it is those folks, not a tiny minority of minority buyer loans that caused the credit crash - don't blame it on the Blacks and Hispanics. F&F didn't typically buy subprime mortgages.
See the Banking Subcommittee report on CSPAN yesterday for more info. |
