[QUOTE=sokinwet;622363] 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. QUOTE]
Would i be wrong in assuming this was meant for communities where people really couldn't afford a house and were really unable to pay back the principal?
Going back to the 1960's to qualify for a mortgage you needed a 20% down payment.
In addition, for a working family, the bank would only take the husband's salary in figuring the payments you could afford ,as it was assumed the wife would stop working at some point after having children.
That was sound principal.
When they started to allow both salaries for payments, people would buy a more expensive house leaving open default if one lost their job.
As always, it's pay me now or pay me later--time to pay the piper at the tax payers expense.
Hybrid Mode
