Tag Archives: community reinvestment act

President Obama Today Blamed Wall Street Greed For Economic Collapse

Was Wall Street any less greedy ten years ago? Or 20 years ago? When politicians pass new welfare benefits, is that greedy? When politicians force banks to lend to politically connected minorities with lousy credit, is that greedy? Dennis Prager … Continue reading

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Good Luck To Uncle Sam In Collecting From 17 Banks

The United States is suing 17 major banks over mortgage bonds they sold to Fannie Mae and Freddie Mac. The US claims that the banks sold fraudulent bonds. That the banks knew that the mortgages backing up the bonds were … Continue reading

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Banks Reluctant To Lend For Mortgages

I don’t blame banks for being reluctant to lend for mortgages. Banks are a rare business. They can’t invest as they wish. They have to get permission from bureaucrats, politicians and radical groups. They have to — mandated by government … Continue reading

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Minority Home Ownership Falls

I am reading Paul Sperry’s new book (The Great American Bank Robbery) on the housing crisis. Paul Sperry writes for Investor’s Business Daily: Blacks and Hispanics have lost much of the housing gains they made during the Clinton and Bush … Continue reading

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U.S. Treasury Will Grade Lenders Over Mortgage Modifications

This reminds when the banks got public grades under the Clinton administration over their willingness to abide by CRA (Community Reinvestment Act). It’s a way to bend the banks to the political will. The sanctity of contracts and moral hazard … Continue reading

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Who KO’d Our Financial System?

The crash of 2008 destroyed $14 trillion in American household wealth. Who’s to blame? I’m reading Paul Sperry’s new book — The Great American Bank Robbery. He says that Fannie Mae and Freddie Mac underwrote $1.8 trillion worth of toxic … Continue reading

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Tom Sowell Discusses His New Book – ‘The Housing Boom and Bust’

Dennis Prager talked to economist Tom Sowell, 79, on Dec. 15, 2009 about his new book “The Housing Boom and Bust”. Dennis: “Who caused this bust?” Tom: “Government. The people who were forced directly to make the bad loans under … Continue reading

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One Law That Put Us In This Mortgage Mess

The 1977 Community Reinvestment Act forces banks to lend money to people in bad neighborhoods who are lousy credit risks. It is not worth fighting the bureaucrats and the politicians. It is simply easier for the banks to lend money … Continue reading

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Why The Housing Boom Went Bust

I’m reading this new book by economist Thomas Sowell — The Housing Boom and Bust. He writes that “the idea that lenders would be offended by receiving monthly mortgage payment checks in the mail from blacks should at least give … Continue reading

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The Politics Of The Housing Boom & Bust

I’m reading this new book by economist Thomas Sowell — The Housing Boom and Bust. The median-priced home in the United States is 3.6 times the median income of Americans. In Great Britain, the median-priced home is 5.5 times the … Continue reading

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