Citibank Gets $306 Billion

iVillage Member
Registered: 03-25-2007
Citibank Gets $306 Billion
185
Mon, 11-24-2008 - 1:21am

Detroit needs to hurry up and come up with a plan.

Sopal

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iVillage Member
Registered: 03-25-2007
Tue, 12-02-2008 - 10:40am

<The CRA was deliberately pumped with money over the last decade...

Sopal

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iVillage Member
Registered: 03-25-2007
Tue, 12-02-2008 - 10:56am

Oh yes...flippers in our community would buy a townhouse for $200K, put in some new carpeting and paint and turn the home around 30 days later for $275K.

Sopal

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iVillage Member
Registered: 11-22-2008
Tue, 12-02-2008 - 2:58pm
"Making funding available for minority borrowers does not mean that banks should abandon sound lending practices, which is what they did."

Agreed, but it was the CRA funding and gauranteeing those loans.

iVillage Member
Registered: 03-25-2007
Tue, 12-02-2008 - 3:25pm

Do you have a link about the CRA (which is a law not a mortgage institution) actually funding loans?

Sopal

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iVillage Member
Registered: 03-26-2003
Tue, 12-02-2008 - 5:20pm

As I understand CRA is simply a law, not a source of funding by itself. I imagine that the money would have been made available from a Fannie May perhaps, and that the oversight would have been the responsibility of whatever agency was supposed to regulate terms of lending etc. IOW, I do not see how the CRA can be said to be the core cause here. If banks could lend responsibly in the 80s and into the 90s, why did they suddenly go off the deep end with the crazy loans.

From what has been posted in this thread it appears that the agency in charge of overseeing lending did try to reign in the irresponsible loans but backed off due to lobbying by the banks. That still does not explain to me, however, how banks could buy crazy mortgages from free-floating brokers who apparently made it up as they went along.

iVillage Member
Registered: 11-22-2008
Tue, 12-02-2008 - 6:25pm

"The CRA is a law not a lending institution.

iVillage Member
Registered: 03-18-2000
Tue, 12-02-2008 - 6:30pm

 


Photobucket&nbs

iVillage Member
Registered: 11-22-2008
Tue, 12-02-2008 - 6:40pm

Post #98


<The CRA was deliberately pumped with money over the last decade...

iVillage Member
Registered: 03-25-2007
Tue, 12-02-2008 - 6:44pm

(rolling my eyes)

Sopal


Sopal

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iVillage Member
Registered: 03-25-2007
Tue, 12-02-2008 - 6:48pm

Apparently you are unable to provide a link to support your assertion that the CRA is a lending institution.

Sopal

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