http://en.wikipedia.org/wiki/Community_Reinvestment_Act
I think the paragraph "Housing Advocacy groups" and "Predatory lending" speaks pretty much for itself. CRA failed miserably in those areas because of the simple fact that after all CRA was all about to provide "equal" financing opportunities to low to mid-income and minority groups. So the pressure was on to provide financing to these groups and this back fired because the low in-come group had hard time paying the loans for a house they really couldn't afford. When you make less then 30k in the household can you really afford a 50k house and all expenses associated with said house? Figure just principal, 15 year loan you're looking at $277/mo. The Department of health and human services figure a 3 person household requires in the lower 48 $18k per year to scrap by. By my book that $277/mo + interest + insurance + maintenance is t much for this family to afford on a "regular loan". "In a 2002 study exploring the relationship between the CRA and lending looked at as predatory, Kathleen C. Engel and Patricia A. McCoy noted that banks could receive CRA credit by lending or brokering loans in lower-income areas that would be considered a risk for ordinary lending practices." Look where we are at today billions of dollar spent on TARP to "save" the banks that did these loans to low and middle income families. Fannie Mae and Freddie MAC brought back from the brink of complete meltdown by even more billions of dollars. A house is not a RIGHT it's a PRIVILEGE and not everyone can nor will be privileged enough to be able to afford a house. A house is not just a loan payment to have and up keep. It's also insurance and maintenance. Anyone owning a house knows that there is never an end to maintenance required once one thing is fixed another will appear some might not require immediate attention but some if immediate or soon attention is given will result in expensive fixes and repairs. The older house the more issues and a lot of the low to medium income families that is all they can afford the older houses in most areas. On top of this unfortunately a lot of the low income people are employees that are "expendable" in many companies so when things start to go hard they are often the first ones to get laid off. The high income guy is probably the person that makes the decisions and he relies on other high income people and mid level income people to make things happen. It's always the poor guy that get the shaft I'm afraid. / Eje -----Original Message----- From: wireless-boun...@wispa.org [mailto:wireless-boun...@wispa.org] On Behalf Of Jeff Broadwick Sent: Friday, February 05, 2010 2:36 PM To: 'WISPA General List' Subject: Re: [WISPA] Common Carrier or what: The FCC'sroleinregulationofnet-neutrality I've seen plenty of research Matt. You ask for proof from me and you've provided none yourself. If you want to provide the basis for your statements and have an argument, let's have it. We'll probably have to do it off-list, since I'm sure everyone is getting tired of this, as am I. Regards, Jeff Jeff Broadwick ImageStream 800-813-5123 x106 (US/Can) +1 574-935-8484 x106 (Int'l) -----Original Message----- From: wireless-boun...@wispa.org [mailto:wireless-boun...@wispa.org] On Behalf Of Matt Liotta Sent: Friday, February 05, 2010 3:29 PM To: WISPA General List Subject: Re: [WISPA] Common Carrier or what: The FCC'sroleinregulationofnet-neutrality What does your quip have to do with your earlier assertions regarding CRA? Is your response to facts that challenge your position to simply change the subject? I worry you formed your position without proper research. -Matt On Feb 5, 2010, at 2:17 PM, Jeff Broadwick wrote: > Talk to a mortgage lender...they have all become agents for Fannie and > Freddie. Few of them do their own underwriting anymore. > > > Regards, > > Jeff > > > Jeff Broadwick > ImageStream > 800-813-5123 x106 (US/Can) > +1 574-935-8484 x106 (Int'l) > > -----Original Message----- > From: wireless-boun...@wispa.org [mailto:wireless-boun...@wispa.org] > On Behalf Of Matt Liotta > Sent: Friday, February 05, 2010 10:53 AM > To: WISPA General List > Subject: Re: [WISPA] Common Carrier or what: The FCC's > roleinregulationofnet-neutrality > > You keep make unsubstantiated claims. Where is your data? If you are > so sure of CRA's effect where is the data? I mean every bank must > disclose there numbers of CRA mortgages, so it is not hard to see what > percentage of the overall market they are. Further, banks also publish > what percentage of bad mortgages they have on the books. The numbers > are there and CRA is a fraction. Look it up. > > Remember, we are talking about subprime mortgages. in 2006, of the top > 25 subprime lenders only 1 was subject to CRA. In fact, Fannie and > Freddie went from a high of 48 percentage of subprime loans in 2004 to > 24 percent in 2006 because of the enormous private market for subprime. > > -Matt > > On Feb 5, 2010, at 10:39 AM, Jeff Broadwick wrote: > >> I'm really not interested in getting into a big hairy argument with >> you on-list Matt. The CRA DID have an effect, and the market created >> by Fannie and Freddie allowed the whole thing to happen. There are >> certainly other factors, but those are the two biggest. I will agree >> with you that there were plenty of stupid people with Cs in their >> titles that bellied up to the trough. >> >> >> Regards, >> >> Jeff >> >> >> Jeff Broadwick >> ImageStream >> 800-813-5123 x106 (US/Can) >> +1 574-935-8484 x106 (Int'l) >> >> -----Original Message----- >> From: wireless-boun...@wispa.org [mailto:wireless-boun...@wispa.org] >> On Behalf Of Matt Liotta >> Sent: Friday, February 05, 2010 10:13 AM >> To: WISPA General List >> Subject: Re: [WISPA] Common Carrier or what: The FCC's role >> inregulationofnet-neutrality >> >> >> On Feb 5, 2010, at 10:06 AM, Brad Belton wrote: >> >>> The underlying point still holds true; big government imposing rules >>> on lenders forcing them to lend to those that wouldn't have normally >> qualified. >>> >> No, it in fact does not hold true. Since CRA mortgages were only a >> fraction of the bad mortgages it is logical to conclude the other bad >> mortgages would have still been made if there were no CRA mortgages. >> Further, it is reasonable to assume that if no CRA mortgages were >> made even more non-CRA mortgages would have been made given the >> additional > available capital. >> >> There is plenty of blame to go around; trying to pin it on one thing >> is a waste of time. >> >> -Matt >> >> >> --------------------------------------------------------------------- >> - >> ------ >> ---- >> WISPA Wants You! 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