Many subprime lenders weren’t susceptible to lending law that is federal

Many subprime lenders weren’t susceptible to lending law that is federal

Glenn Hayes could be the director that is executive of Neighborhood Housing Services of Orange County.

Glenn Hayes of Neighborhood Housing Services of Orange County claims they will haven’t had any foreclosures because they’ve been assisting time that is first.

Did a law that is 31-year-old the indegent some slack during the bank unintentionally hurt you wallet?

Plenty of opinion leaders think therefore. From the editorial pages regarding the Wall Street Journal to talk programs towards the page that is op-ed of enter, folks are billing that the city Reinvestment Act of 1977 forced banks to create bad loans, resulting in economic Armageddon.

There’s just one single issue: It isn’t true.

A enter analysis in excess of 12 million subprime mortgages well worth nearly $2 trillion indicates that the majority of the loan providers whom made dangerous subprime loans were exempt through the Community Reinvestment Act. And many of this loan providers included in what the law states that did make subprime loans came later to this market – after smaller, unregulated players revealed there clearly was cash to be produced. Continue reading