NY Times Hides Blame in Mortgage Market Collapse
The paper
notes that there have been higher default rates for blacks and Hispanics than whites. That’s because, in the boom years of mortgage lending, minorities were more likely to get subprime loans.
The Times reports that in 2006, 17.5% of white homeowners got subprime (below the prevailing interest rate) mortgages, compared to 52.8% of blacks and 44.9% of Hispanics
In 1977, Congressional Democrats decided that low rates of minority homeownership were due to discrimination.
With the Community Reinvestment Act, they insisted that lending institutions had an “affirmative obligation” to meet the “credit needs” of the communities in which they were chartered.
Regulators begin using minority lending as a criterion for approving mergers, acquisitions and branch openings. All of this exerted enormous pressure for banks to make high-risk loans.
In 1992, Democrats pressured the federal lending giants Freddie Mac and Fannie Mae to purchase bundles on these loans, encouraging more risky lending and putting Freddie and Fannie in jeopardy.
NY Times Hides Blame in Mortgage Market Collapse :: Boycott The New York Times
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