Again, more dodging the question and inaccuracies. I don't refuse to consider the underlying legislation, I have read and addressed your concerns. You refuse to consider any arguments why these legislations aren't relevant to the issue.

In particular, you ignore evidence that the CRA is not at fault. Namely subprime mortgages were almost entirely driven by investment banks NOT SUBJECT TO THE CRA.

In 1977 it might have been true that the lenders were not making these loans at appropriate rates. However, by 2007 the situation was largely changed. I consider the most important information here to be:

(I) The 1968 Fair Housing Act is not actually relevant to the situation.

(II) The 1977 Community Reinvestment Act does not actually cover investment banks who were by far the largest dealers in subprime mortgages.

Your coverage of these laws is highly inaccurate. Nothing says anything about refusing an individual loan without regard to reason. Furthermore, conditions of the CRA are only a condition for mergers and takeovers. The CRA does not have any enforcement powers except when the bank is trying to reduce competition in the marketplace. I personally believe it is not unreasonable to test whether a community is being served adequately when considering reducing competition in a market. Particularly one with such limited competition as the banking sector.

Quote Originally Posted by DuncanONeil View Post
Were it true that lenders "wanted to make those loans" there would have been no need for legislation to require lenders to grant loans to those they had determined were high risk! Because it happened after said legislation has no bearing on how it came about!

Your choice to refuse to consider the underlying legislation is troubling. Seems as if you, like others, are inclined to demonize a specific entity for some specific purpose.

The head of GMAC (controlled by the Government) received a compensation package exactly the same as, I believe, head of Smith Varney. Yet The head of Smith Varney was excoriated for his salary. Not one word about the head of GMAC, even though it is hemoraging money in the smae fashion!