AdamT
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Where are your links, my fine feathered friend? CRA regulations relaxed all lending rules and regulations.
I witnessed people who no money down buy homes; I was their Realtor. I saw people get their downpayments from the Seller through Federal programs such as AmeriDream thru FHA and, damn, I can't remember the other name, more popular. I saw appraisers use those AmeriDream hokey sales to increase value by 6% immediately after purchase. (Bush outlawed these programs in 2008...too late.)
I lived it, Adam. I saw what our government did to cause this meltdown. And the CRA started the ball rolling.
Honestly, I've problably posted the links 20 times ... I'll do so again if you really want.
I perfectly understand that no-paperwork mortgages were as common as dirt, but those kinds of loans are actually forbidden under CRA regs, which specifically require lenders to take into consideration the ability of the borrower to pay. That's why your Countrywides and your HSBCs were among the biggest subprime lenders.
Okay, I will provide some facts to back it up:
2006: Private Firms Issued About Six Out Of Every Seven Subprime Mortgages. As reported by McClatchy:
Federal Reserve Board data show that:
More than 84 percent of the subprime mortgages in 2006 were issued by private lending institutions.
Private firms made nearly 83 percent of the subprime loans to low- and moderate-income borrowers that year.
Only one of the top 25 subprime lenders in 2006 was directly subject to the housing law that's being lambasted by conservative critics. [McClatchy, 10/12/08, emphasis added]
2008: The 15 Largest Subprime Servicers Were All Private Companies, Despite Large Drops In The Volume Of Their Subprime Business Compared To 2007.
Private Wall Street Companies Caused The Financial Crisis — Not Fannie Mae, Freddie Mac Or The Community Reinvestment Act | Political Correction
In other words, this was a crisis engineered by private equity firms -- not government. Hmm, that rings a bell; isn't there some guy saying he wants to run the government like a private equity firm?