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CRA and Countrywide

By Entitlemented follow Entitlemented   2016 Apr 26, 5:41pm 3,324 views   9 comments   watch   nsfw   quote   share    


http://www.businessinsider.com/three-ways-the-cra-pushed-countrywide-to-lower-lending-standards-2009-6

When we discuss the role of the Community Reinvestment Act and other fair lending rules in contributing to lax lending standards, people bent on exonerating the CRA often point out that many of the questionable loans were made by non-depository mortgage companies not covered by the CRA. Barry Ritholtz has been a prominent critic of the theory that the CRA has some culpability for lax lending.

1   MisdemeanorRebel   ignore (3)   2016 Apr 26, 6:45pm     ↓ dislike (0)   quote   flag      

Oh Jesus Christ, not the delayed 30+ year CRA Red Herring Bullshit again. Nevermind the vast majority of homes that fired off the financial crisis were SFHs owned by White Middle Class People in the Suburbs.

2   indigenous   ignore (0)   2016 Apr 27, 6:55am     ↓ dislike (1)   quote   flag      

Yup this is what I have read as well.

There has never been a bubble in history that was not caused by loose money policies.

Just as Mozillo had blind spots, so do the posters on this thread who work in banking.

"Of course, Angelo Mozillo didn't need very much prompting on this score. He believed exactly what the CRA regulators believed: that these lax lending practices were the wave of the future, democratizing the glories of home ownership."

The myth they espouse to is the one that says big evil business causes all the trouble.

3   HydroCabron   ignore (1)   2016 Apr 27, 9:42am     ↓ dislike (0)   quote   flag      

indigenous says

There has never been a bubble in history that was not caused by loose money policies.

Mozilla was a doe-eyed moist and tender nubile idealist when CRA lured him into a speakeasy for just one innocent sip of that sweet bathtub hooch.

Amidst the jazz, with its racy but unstated implications of decadent excess, and the flappers and chorus girls, all so new to an innocent like him, he lost his bearings.

Mozilla could not have understood the implications of these devil's instruments. He had no background in lending risk assessment, and no reason to take an interest in it, merely having founded a mortgage lending company.

4   indigenous   ignore (0)   2016 Apr 27, 12:31pm     ↓ dislike (0)   quote   flag      

As stated the two posters have blind spots to the intent of the article.

5   HydroCabron   ignore (1)   2016 Apr 27, 1:54pm     ↓ dislike (0)   quote   flag      

indigenous says

As stated the two posters have blind spots to the intent of the article.

And posting it twice makes your "argument" even stronger.

Mozilla could have just resigned, or sold CountryWide, or refused to sell shit mortgages. At no point was he under physical compulsion to originate shit.

He chose to sell shit. The government put no gun to his head.

6   tatupu70   ignore (0)   2016 Apr 27, 2:11pm     ↓ dislike (0)   quote   flag      

I don't understand this argument at all. The government says you must give bad loans to poor people. Therefore you decide to give even crappier loans to non-poor people without any government incentives? On what planet does that make sense?

7   indigenous   ignore (0)   2016 Apr 27, 4:41pm     ↓ dislike (0)   quote   flag      

HydroCabron says

And posting it twice makes your "argument" even stronger.

Yes, I posted the exact same thing twice because I enjoy reading my posts.

HydroCabron says

The government put no gun to his head.

Of course the government had nothing to do with it. They did not enable Mozilla at all, oh wait that is what the article is saying though? I guess it is not possible to sound the depths of this conundrum...

8   HydroCabron   ignore (1)   2016 Apr 27, 5:31pm     ↓ dislike (0)   quote   flag      

No way did the government create Mozilla.

He came from spores.

9   indigenous   ignore (0)   2016 Apr 27, 5:57pm     ↓ dislike (0)   quote   flag      

That's right without the government Dworkin would have just been another IHL. Government injustices have created an opportunity for Trump.


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