Minority Lending is Not To Blame For Meltdown
January 15, 2009
Despite all evidence otherwise, Wall Street and other interest groups want to blame the Community Reinvestment Act and minority homeownership in general for the current economic meltdown.
Here are some quick facts regarding the Community Reinvestment Act and its nonexistent role in the subprime loan market:
CRA was passed in 1977, long before the subprime market ever existed.
- Over 94 percent of subprime loans that caused the subprime meltdown were not counted under the CRA.
- Lenders created the demand for riskier loans.
- The majority of subprime loans did not go to minorities.
For more information on why the CRA had little to do with the current mortgage meltdown, please download our full brief: