sward9: If you check the federal reserve website you will find that the CRA loans made up only 10% of the loans for the 500 CRA approved banks and that a Federtal Reserve survey in 2000 showed that the profits for CRA loans were slightly less profitable than the rest of the portfolio.
But that was when we had a solid economy and before the invasion of the sub-primes.
Traditional loans at this time were 125 basis points above 10-year treasuries and mortgage brokers earned an origination fee of 1 to 1.25% of the loan amount.
The sub-prime lenders descended like locusts on the minority neighborhoods with loans that generated anywhere from 5-15% fees with the deregulation.
It was legalized rape of minority families desperate to get their children out of inner city gangs, drugs, poor schools, etc.
Suggesting that the CRA program which worked well from its inception in 1977 through to 2000 was at fault is abolute and total BS. It was the deregulation and sub-primes that did the job.









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