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Association of Community Organizations for Reform Now (view source)
Revision as of 17:17, August 7, 2009
, 17:17, August 7, 2009→Community Redevelopment Act
Investor's Business Daily added:
Investor's Business Daily added:
:The revisions also allowed for the first time the securitization of CRA-regulated loans containing subprime mortgages. The changes came as radical "housing rights" groups led by ACORN lobbied for such loans. ACORN at the time was represented by a young public-interest lawyer in Chicago by the name of Barack Obama. [http://boards.msn.com/MSNBCboards/thread.aspx?threadid=787698]
:"The revisions also allowed for the first time the securitization of CRA-regulated loans containing subprime mortgages. The changes came as radical "housing rights" groups led by ACORN lobbied for such loans. ACORN at the time was represented by a young public-interest lawyer in Chicago by the name of Barack Obama." [http://boards.msn.com/MSNBCboards/thread.aspx?threadid=787698]
Since these loans were to be underwritten by the government sponsored Fannie Mae and Freddie Mac, the implicit government guarantee of those loans absolved lenders, mortgage bundlers and investors of any concern over the obvious risk. As Bloomberg reported: "It is a classic case of socializing the risk while privatizing the profit." [http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aSKSoiNbnQY0]
Since these loans were to be underwritten by the government sponsored Fannie Mae and Freddie Mac, the implicit government guarantee of those loans absolved lenders, mortgage bundlers and investors of any concern over the obvious risk. As Bloomberg reported: "It is a classic case of socializing the risk while privatizing the profit." [http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aSKSoiNbnQY0]