09-26-2008, 09:07 PM
No swampy, the CRA did not urge "no doc" loans on lenders. Just that loans be made to members of communities underrepresented in the loans up to that point. In other words, end the practice of "red-lining" by banks. Most of the "no-doc" and sub-prime loans causing the current problems were made by lenders such as mortgage companies not even under requirement to meet CRA rules, and not regulated as such. In fact the banks under CRA requirements were encouraged to make "responsible investments", http://www.newamerica.net/blog/asset-bui...t-cra-7222. In fact, most banks with CRA loans did not sell them on the secondary market, but are holding them on their own books. So, sorry swampy, the facts don't support your supposition based on one statement from your local banker.