pbrauer
DP Veteran
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- Jun 6, 2010
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Re: Tea Party Rep: Bank Should Have Known I Wouldn't Be Able To Repay $2.2 Million Lo
This looks like misinformation some 'conservative' radio talk show host fed you, surely you can do much better. Please show proof of this crap!!!Not going to tie this to anyone ….... but it's clear that pressure was put on these banks to make loans that shouldn't have been made ..
What the CRA does, in effect, is compel banks to seek the permission of community activists to get regulatory approval for bank expansions and mergers. Often this means striking a deal with activist groups such as ACORN or unions like the Service Employees International Union (SEIU) and agreeing to allocate credit to poor and minority areas that are underserved.
In short, the CRA encourages banks to make loans they would not ordinarily make. What's more, these agreements often require that banks offer no-money-down mortgages and remove caps on how much debt a borrower can take on. All of this is done in the name of "financial democracy."