Yesterday's Power Line posted an article about the proposed expansion of the Community Reinvestment Act (CRA) by the Obama Administration and the Democrats in Congress. In case you have forgotten, the CRA is the organization that encourages making loans to people who cannot or will not pay them back and offers loans with "flexible underwriting criteria. It's very nice to want to help low-income people buy houses, but reality needs to enter into the picture at some point. Someone making $ 30,000 a year cannot afford to buy a $ 500,000 house with no down payment. Encouraging that sort of purchase is what led us into the banking crisis to begin with. Now Congress is poised to do it all over again.
Either these people do not understand wise lending practices or they don't care. Either way, this is legislation that needs to be stopped.
Leave a comment