Community Reinvestment Act....

[coffegrl]

I know I'm setting myself up for a potential shit storm here, but can someone please explain to me how the Community Reinvestment Act 'forced' banks to offer sub-prime loans, and then how it forced mortgage brokers to push them on folks that really couldn't afford them?

Comments

[theycallmebu]

I have that filed under the Fuck if I know category

[cryptosporidosi]

I fairly sure it was all part of the Plan. Here read this
http://www.boingboing.net/2008/09/30/no-money-down.html
, it seems slightly partial though informative.
Cheers!

[coffegrl]

that was informative, but didn't seem to ttalk about the CRA. I have heard people say that the CRA caused this mess by 'forcing' banks to provide sub-prime loans to avoid being accused of redlining.
I just don't see it, and was hoping that someone could explain the relationship to me.