“EVERYONE HAS A RIGHT TO A DECENT HOME” is and has been the misguided social policy of the Left, especially of the PROGRESSIVES since the days of Woodrow Wilson. John Kennedy’s “NEW FRONTIER”, Lyndon Johnsons “Great Society” helped cause :the housing bubble; TARP and the $16 Trillion Debt. Visit history. Compile facts and you find the root cause of the present worldwide Financial Crisis. The cause can be found as far back as the Bible , — with it’s idea that everyone must be their brothers keeper, to Karl Marx, John Dewey, and The Left, meaning: the Socialists, which includes the Communists; the Fascists; the Progressives; the Media, and thousands of “Big Government is the Solution” dupes, dopes and thugs. Religion jumped in when the Catholic Bishops published and read from their pulpits in 1975 “The Right To A Decent Home”. They never reveled “Who Would Pay “for other peoples homes or how the home money would flow to the beneficiaries but the Catholics were joined by all the other major religions and their leaders who didn’t have to jump on the bandwagon, they were already there.
When the stupid Left Wing Liberal Policies blew up — because the poor could not make their mortgage payments, (that’s why they are called “Poor” for crying out loud), the government, the compliant, therefore complicit media and The Left who had called the banks and the Savings and Loans RACIST — blamed the banks but not the politicians who not only LIED, they ran for cover after they decided to blame the banks who had been forced by the Carter Adminstration and right up to Obama, to make bad loans to poor credit risks who did not have the money to make or to continue to pay for Government Ordered Mortgages, and the LEFT RAN FOR COVER. Not only did they protect their pet programs to reward people of color, that’s who were supposed to be helped by the PRODUCTION OF TOXIC ASSETS. which is code for “Make Bad Loans”, so they lied. The lies continue right up to 2012 and very few blame the poor stupid dupe named JIMMY CARTER. Carter is responsible for beginning the present financial debacle.
The Carter adminstration passed the Community Reinvestment Act so that banks were forced to reduce down payments practically to zero and lend to a lot of poor people who were bad credit risks. The toxic assets were caused by ill-advised government regulations and for forcing the banks to make bad loans.
Carter and his ilk are the people who decided banks were racist. Carter has a special awareness of racism, being from Georga. The CRA, a Soviet-style ORDER forced banks to make bad loans to people who could not afford the payments because the borrowers were Black, Hispanics and to some who were outright criminals. Government forced banks to use a borrowers race to make bad loans or be fined and maybe lose their Charter.
During a 2008 House Committee on Oversight and Government Reform hearing on the role of Fannie Mae and Freddie Mac in the financial crisis, including in relation to the Community Reinvestment Act, asked if the CRA provided the “fuel” for increasing subprime loans, former Fannie Mae CEO Franklin Raines said it might have been a catalyst encouraging bad behavior,….. All that is bad enough but it’s about to get worse if Obama is re-elected. Here’s more about the CRA but you need to figure out exactely how the Sub-prime Mortgage Crisis was caused by the CSA.
The following is from: http://spectator.org/archives/2012/07/27/and-you-thought-the-housing-cr
By William Tucker on 7.27.12 @ 6:09AM
The Community Reinvestment Act is back, as if 2008 never happened.
Do you remember that thing about how the banks wouldn’t lend to blacks and Hispanics because they were racists? And do you remember how they passed the Community Reinvestment Act so that banks were forced to reduce down payments practically to zero and lend to a lot of people they knew were bad credit risks? And do you remember how Wall Street bundled all these risky subprime mortgages and sold them to investors around the world so that when it became clear that those people weren’t going to be able to pay their mortgages banks everywhere were left holding the bag and all five of the Wall Street investment houses either went under or had to be bailed out by the federal government?
And do you remember how, when it was all over, liberals said it was actually the banks’ fault for “deceiving” all those people into thinking they could afford to buy homes and that the banks should be punished for it and some of those people be allowed to keep their homes anyway? And do you remember how all this cost thegovernment close to a trillion dollars and put the whole economy in a hole that we really haven’t begun to dig ourselves out of yet?
Well, get ready because the whole thing is about to happen again.
Yes, believe it or not, the federal government is now starting another initiative to force banks to lend to low-credit-rated blacks and Hispanics — not just anybody but specifically blacks and Hispanics — and is threatening — and already imposing — huge punitive fines if they don’t. Moreover, this time they’re going even further. They’re going to take over the credit rating agencies and force them to change their standards to accommodate blacks and Hispanics so that nobody will have any idea who is a bad credit risk and who is not. In so many words, the government is about impose its will on the whole home-lending market and force another round of bad loans so that the banks are going to be looted once again so that even the federal government may not be able to bail them out this time.
The principle instrument this time is not the Justice Department, Fannie Mae and Freddie Mac, as it was last time, but the brand-new Consumer Finance Protection Bureau, designed by good old Elizabeth “Nobody-Ever-Made-It-On-Their-Own” Warren, which should really be called the Bureau for Bringing Down the Entire Economy. As reported in last Sunday’s New York Post by Hoover Institution Media Fellow Paul Sperry, the CFPB has just announced that it is adopting a 20-page “Policy Statement on Discrimination in Lending” issues by the Interagency Task force on Fair Lending in 1994 that kicked off Attorney General Janet Reno’s draconic enforcement of the Community Renewal Act. Part of the policy statement reads, “Applying different lending standards or offering different levels of assistance to applicants who are members of a protected [i.e., minority] class is permissible in some circumstances. Providing different treatment to applicants to address past discrimination would be permissible if done in response to a court order.” There are already plenty of court orders sitting around.
Just two weeks ago Wells Fargo caved to a Justice Department offensive and paid $175 million for alleged past discriminating against minority borrowers. All this occurred even though the bank received an “outstanding” grade in its most recent Community Reinvestment Act exam. The government did not even bother to prove discrimination in a single instance but relied instead on statistics showing lower rates of homeownership in minority neighborhoods. Thomas Perez, the Justice Department honcho who is spearheading this campaign, says banks discriminate “with a smile” and “fine print” and are “every bit as destructive as the cross burned in a neighborhood.” Nice objective evaluation there.
As in most such cases, Wells Fargo chickened out about going to court and refused to admit any wrongdoing but agreed to all kinds of diversity training and sensitivity counseling. The bank will have to “prominently display” a notice informing minority customers that they cannot be turned down for loans just because they are receiving public assistance such as unemployment benefits, welfare payments or food stamps. (Maybe they can even use food stamps for the down payment.) Wells Fargo must provide minority customers $50 million for down-payment and closing-cost assistance, including “Borrower Assistance Grants” of up to $15,000 per individual. It was also ordered to pay $125 million to as yet unnamed victims of previous discrimination. But get this! If those past victims don’t show up, the money must be handed over to community organizing groups. President Obama, you have a job waiting for you if you lose office this fall.
Almost a dozen banks are under similar investigation and will be soon falling like dominoes unless one of them musters the courage to stand up to the Justice Department in court.
But the real destruction is going to be wrought by CFPB, created by Dodd-Frank and just getting started. Last week Richard Cordray, who is serving as a disputed recess appointee without the consent of the Senate, announced that not only will CFPB be going after banks but will also target the credit rating agencies that evaluate people’s creditworthiness based on past performance in paying debts. They too will be vetted for racial discrimination. In May 2011, the non-partisan Policy and Economic Research Council completed what it described as the first evaluation of Equifax, Experian, and TransUnion, the three credit rating agencies. The report concluded that in less than 1 percent of cases was a score changed by more than 25 points after a dispute process and that “consequential inaccuracies are rare.” Moreover, “95 percent of disputing participants were satisfied with the outcomes of their disputes, suggesting widespread satisfaction” with the process. In other words, credit ratings are pretty accurate. Banks rely heavily on them and say that, if anything, the agencies tends to underestimate the rate at which minority buyers will default on mortgages.
So guess what happens next? Under the pretext of “regulating” the agencies, CFPB will hammer away, forcing them to upgrade the scores of blacks and Hispanics. Standards will be diluted or abandoned entirely and within a few years the banks will be flying blind with no reliable information on who is a good credit risk and who isn’t. Does that sound like the formula for another mortgage meltdown? It sure does to me.
At this point in my story, it is customary for the journalist to proclaim that he isn’t trying to protect the lenders but is really concerned with those unfortunate minority individuals who will end up with bad loans. Sperry follows this pattern by declaring, “In the end, it will be the minorities Obama and [Eric] Holder are trying to help who will be hurt most.”
I think I’m going to have to depart from the tradition. I think what we are witnessing is the looting of America on behalf of minorities in a way that better end soon or we are going to bring the whole system down upon our heads.
With the current administration in power, the perception is growing among minorities that everything in the economy can be had for free and that President Obama and his administration are going to provide it for them. For instance, there is a scam going on around the country right now where con artists call up homeowners and tell them that President Obama has a new program where he is going to pay their electrical bills. All the homeowner has to do is provide his Social Security number and other personal information. The con game started in Michigan among minority populations in depressed cities such as Flint and Grand Rapids. It has now spread as far as far as Florida and Mississippi. More than 2,300 people in Michigan were bilked out of $1 million, another 10,000 have been swindled in New Jersey.
What is amazing is that all these people actually believe that President Obama is ready to pay their electrical bills. It is symptomatic of a rising tide of dependency and the growing sense that nobody has to be responsible for anything anymore and we can all live off “the rich.” If we don’t get these people out of office soon, there isn’t going to be much left to pick over in the American economy.
What should be done? Re-read the previous sentence.