|
Not that 30 years working in the industry give me any special insights but rather than preach I'l state in laymans terms... CRA was designed to push lenders to provide services to the communities they serve. It is not and will never be popular with lenders because CRA requires them to be proactive in their communities and offer concessions that limit their profit. It does not require lenders to loosen credit standards or to make risky loans that they immediately sell on the secondary market for a quick profit. The current mess is the result of deregulation for the benefit of lenders and investors that allowed them to make a fast buck investing in mortgage based secutities ...not for the first time buyer that gets a 5% downpmt. loan.
|