Blame the subprime mortgage mess on the niggras. After all, they are the only ones who took subprime loans. Who cares if redlining is illegal, this mess wouldn't have happened if the niggras didn't receive the loans. Who cares if the banks, mortgage companies, and Wall Street over leveraged themselves getting the loans, bundling the loans, and then selling them.
Just blame the niggras.
[ UPDATE ]
Janet L. Yellen, President and CEO, Federal Reserve Bank of San Francisco
There has been a tendency to conflate the current problems in the subprime market with CRA-motivated lending, or with lending to low-income families in general. I believe it is very important to make a distinction between the two. Most of the loans made by depository institutions examined under the CRA have not been higher-priced loans,[16] and studies have shown that the CRA has increased the volume of responsible lending to low- and moderate-income households.
[16]. According to the 2006 HMDA data, 19 percent of the conventional first lien mortgage loans originated by depository institutions were higher-priced, compared to 23 percent by bank subsidiaries, 38 percent by other bank affiliates, and more than 40 percent by independent mortgage companies. Robert B. Avery, Kenneth P. Brevoort, and Glenn B. Canner, “The 2006 HMDA Data,” Federal Reserve Bulletin, Volume 94 (2007), p. A89.
Michael Barr, Law Professor, University of Michigan Law School
Despite the fact that CRA appears to have increased bank and thrift lending in low- and moderate-income communities, such institutions are not the only ones operating in these areas. In fact, with new and lower-cost sources of funding available from the secondary market through securitization, and with advances in financial technology, subprime lending exploded in the late 1990s, reaching over $600 billion and 20% of all originations by 2005. More than half of subprime loans were made by independent mortgage companies not subject to comprehensive federal supervision; another 30 percent of such originations were made by affiliates of banks or thrifts, which are not subject to routine examination or supervision, and the remaining 20 percent were made by banks and thrifts. Although reasonable people can disagree about how to interpret the evidence, my own judgment is that the worst and most widespread abuses occurred in the institutions with the least federal oversight.
At least there are people who refuse to blame it on the niggras.
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