09-20-2008, 04:30 PM
Gutenberg summed up the CRA better than I could, and has pointed out that it had nothing to do with the loose lending practices. In fact, most of the foreclosures I am hearing about are not ones on lower priced properties, with outstanding mortgages in the $100-150K or lower range. No, they are the higher priced properties where people bought more house than they really could afford, or used it as collateral for another loan when the paper market value went higher. Those foreclosures are on several $100K of loans, and those were not sold to low income persons.