Quote:
Originally Posted by checkthisout
Quote:
|
Originally Posted by bobr
and flat out pressured lenders to lower their lending standards..
|
Where on earth are you coming up with this crap?
|
I had to look really hard. It was the very first thing that popped up when I Googled "Community Reinvestment Act".
From the first paragraph of
Community Reinvestment Act - Wikipedia, the free encyclopedia :
The Act requires the appropriate federal financial supervisory agencies to encourage regulated financial institutions to meet the credit needs of the local communities in which they are chartered, consistent with safe and sound operation. (See full text of Act and current regulations. To enforce the statute, federal regulatory agencies examine banking institutions for CRA compliance, and take this information into consideration when approving applications for new bank branches or for mergers or acquisitions.
So the CRA regulators would "encourage" lenders to lend to people in their community. That doesn't sound too bad.
The next sentence has teeth: If the lenders did meet the regulator's definition of "meeting the needs of local communities", they could very well be turned down applications for new bank branches, mergers, etc.
How is that for regulation? You better meet your quota of loans to people with BAD CREDIT or you may find yourself unable to open up that new branch across town.
Is this the type of regulation that you think we need more of?
