Blame Game Gets Nasty When It Targets the Poor, By Michelle Singletary, Sunday, October 12, 2008; Page F01
Community Reinvestment Act of 1977, or CRA.
CRA specifies that financial institutions cannot be forced to make loans or investments or provide services inconsistent with safe and sound banking practices.
No sir, it wasn’t lending under CRA rules that took down the mortgage industry. It was greedy, reckless banking executives, lending officers and mortgage brokers who were supposed to properly screen borrowers and apply prudent loan underwriting standards. It was lax and inadequate federal and state regulation that allowed exotic and predatory mortgages to be sold to borrowers.
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