09-26-2008, 06:18 PM
Mikey... the CRA "strongly urged" banks to offer what were called 'no doc' loans. (No proof of income, no down payment, no qualifying). I've talked to my local banker and he said he would not approve 'no doc' loans. The unscrupulous lenders went for it like dogs to a bone. The more loans they could write, the money they could make selling them to the investment banks. The investment banks don't vet the loans, and good loans got mixed in and bundled with bad loans when sold to the investment banks.
I don't know about where you live, but here in Florida many low and middle income rental units were turned into condos leaving the people who couldn't afford to buy with limited housing opportunities. Then the "flipping" market crashed leaving the condo speculators (formerly landlords) with units they couldn't sell in the flooded condo market and renters without affordable housing. Greed, greed, greed all based on the idea that low income people should be able to buy a home (CRA social engineering).
I don't know about where you live, but here in Florida many low and middle income rental units were turned into condos leaving the people who couldn't afford to buy with limited housing opportunities. Then the "flipping" market crashed leaving the condo speculators (formerly landlords) with units they couldn't sell in the flooded condo market and renters without affordable housing. Greed, greed, greed all based on the idea that low income people should be able to buy a home (CRA social engineering).