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Neither the Community Reinvestment Act of 1977 (which was only applicable to regulated lending institutions) nor the regulated lending institutions themselves were ever at the core of the problem. The main problem originated with unregulated mortgage brokers who wrote mortgages they never intended to hold and Wall Street investment houses who bundled mortgages into securities and then traded them - neither of which would have been permitted under Glass-Steagall.
After Glass-Steagall and prior to the Gramm-Leach-Bliley Act, it was very unusual for a mortgage to ever be upside-down. Now your house and its mortgage are commodities on Wall Street and half the purchase price can be siphoned away. Enjoy deregulation.
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Douglas Campbell, P.E.
1986 Isuzu P'up, 177,673.8 miles.
- Hella headlights (highly recommended)
- DOT C-2 back end (also recommended)
- R-12 air conditioner converted to R-406a. Saved ozone and money
- 4.1:1 final drive converted to 3.4:1. Quieter, better mileage but it's a good thing I live in the flat Midwest.
- 9/22/2007, age 21: Still running well when reluctantly sent away for reincarnation, due to body & frame rust.
Last edited by drcampbell; 10-15-2009 at 11:03 AM.
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