From Clinton to Obongo

[jnevin]

The mess will just be blamed on the next guy... Again.

Obama administration pushes banks to make home loans to people with weaker credit - Washington Post

 

[mrplunkey]

I wouldn't worry about it. My plan is to bundle up all these risker mortgages and then slice them up into tranches with different risk/return characteristics. I bet those guys on wall street will snap them right up.

We'll take out insurance on them too, so there's no way they can fail.

 

[jnevin]

I'm not worried about a thing. Consumers, realtors, builders, lumber mills, etc should be.

 

[Headholio]

I hate to tell you, but government lending programs didn't cause the housing meltdown, and blaming it on Clinton was some right wing spin so absurd people are still laughing about it.

 

[75th]

Eh I'd argue that the GLBA definitely played a role and as such Clinton deserves a share of the blame. But yeah, the idea that lax lending standards / GSEs were the causes has been discredited so many times over I dont even think the current GOP is running with that line anymore.

 

[mrplunkey]

The CRA definitely helped getting the ball rolling.

 

[goose333]

so government had nothing to do with the crash?? You really believe that?

 

[75th]

The CRA definitely helped getting the ball rolling.

Nah, it really didnt.

so government had nothing to do with the crash?? You really believe that?

Government, how? Last I checked Bill Clinton was affiliated with this thing you call the government, and that he signed a bill which effectively contributed to the situation. It's right there in my previous post.

 

[Headholio]

84.3 percent of subprime loans in 2006 were made by financial institutions not governed by the CRA.

http://www.traigerlaw.com/publicati..._llp_cra_foreclosure_study_1-14-08.pdf#page=2

 

[75th]

84.3 percent of subprime loans in 2006 were made by financial institutions not governed by the CRA.

http://www.traigerlaw.com/publicati..._llp_cra_foreclosure_study_1-14-08.pdf#page=2

Yessir, although to be fair you should have given a warning that the data included would challenge their dogma. Some folks cant handle stuff like that.

Here's another one w/r/t fannie/freddie, and this one is considered to be one of the most comprehensive and informative.

ETA while the study you posted provides some high level value (despite being restricted to a 1 year time frame), it's also important to realize that historically loans provided by CRA "member" banks have similar if not lower default rates than their private counterparts.

Data like that is a big reason why the GOP moved away from the CRA talking point and got back to simply shouting "government."