It all began with the Community Reinvestment Act (CRA) of 1977 under President Jimmy Carter.
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He would do the same with the Community Reinvestment Act, which was abused to help cause the financial crisis.
The passage of the federal Community Reinvestment Act in the 1970s encouraged banks to build branches in poor areas.
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Greed, stupidity, rapaciousness, simple human failings, capitalism, the Community Reinvestment Act, politicians: take your pick from these and more.
The Community Reinvestment Act, for example, requires banks to invest a certain portion of their lending in poor areas.
Congress is not touching the Community Reinvestment Act and subsequent government decrees mandating that banks grant mortgages to unsound borrowers.
The Community Reinvestment Act is oftentimes not enforced as it should be.
The Community Reinvestment Act (CRA) did the same thing with traditional banks.
It, like its Citicorp partner, could be covered by the Community Reinvestment Act, which encourages banks to invest in low and moderate-income neighbourhoods.
The claim is ironic, in a way, since lenders frequently started lending in minority neighborhoods to comply with Community Reinvestment Act and counter allegations of racial redlining.
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Clinton recognized the untapped potential in some Carter-era legislation, the Community Reinvestment Act (CRA), which would give his administration leverage over financial institutions to increase loans to members of key voting blocs despite their relatively poor credit ratings.
However, it was massive government support for the housing industry through the mortgage deduction, rules such as the Community Reinvestment Act, and a multitude of subsidy programs that created the property bubble which burst so disastrously in 2008.
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Congress had seen its earlier efforts to incentivize the investment of corporate resources in the development of low-income housing, including the Community Reinvestment Act of 1977 (CRA) and the passive-loss provision in the Economic Recovery Act of 1981, fail.
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Included were a vastly beefed up Community Reinvestment Act, actual or threatened discrimination suits by Justice and HUD to enforce regulatory requirements, and regulatory mandates on Fannie Mae and Freddie Mac to finance trillions in mortgage securities backed by subprime mortgages.
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An additional 4.5 million were guaranteed by the FHA and sold through Ginnie Mae before 2008, and a further 2.5 million loans were made under the rubric of the Community Reinvestment Act (CRA), which required insured banks to provide mortgage credit to home buyers who were at or below 80% of median income.
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