Citibank Gets $306 Billion
Find a Conversation
Citibank Gets $306 Billion
| Mon, 11-24-2008 - 1:21am |
Detroit needs to hurry up and come up with a plan.
| Mon, 11-24-2008 - 1:21am |
Detroit needs to hurry up and come up with a plan.
Pages
<The CRA was deliberately pumped with money over the last decade...
Sopal
<?xml:namespace prefix = v ns = "urn:schemas-microsoft-com:vml" />
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
<?xml:namespace prefix = v ns = "urn:schemas-microsoft-com:vml" />
Agreed, but it was the CRA funding and gauranteeing those loans.
Do you have a link about the CRA (which is a law not a mortgage institution) actually funding loans?
Sopal
<?xml:namespace prefix = v ns = "urn:schemas-microsoft-com:vml" />
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.
"The CRA is a law not a lending institution.
<The CRA was deliberately pumped with money over the last decade...
(rolling my eyes)
Sopal
<?xml:namespace prefix = v ns = "urn:schemas-microsoft-com:vml" />
Apparently you are unable to provide a link to support your assertion that the CRA is a lending institution.
Sopal
<?xml:namespace prefix = v ns = "urn:schemas-microsoft-com:vml" />
Pages