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<blockquote data-quote="Jones" data-source="post: 909228" data-attributes="member: 4805"><p>The CRA did not require either by law or by regulation that banks make loans to high risk individuals. That article from CATO claims that they did but it doesn't support that claim with any evidence. If the CRA actually said that it should be pretty easy point it out yet no one seems to be able to.</p><p></p><p>CRA loans were not all subprimes nor did they default at the same rates as subprimes. CRA loans that <em>were</em> subprimes did default at the same rate as subprimes extended by private lenders (non-CRA), but that's the point. Regardless what class of loan they were CRA loans defaulted at the same rates as non CRA loans of the same type. If they were in fact higher risk you would expect them to default at higher rates but that didn't happen.</p></blockquote><p></p>
[QUOTE="Jones, post: 909228, member: 4805"] The CRA did not require either by law or by regulation that banks make loans to high risk individuals. That article from CATO claims that they did but it doesn't support that claim with any evidence. If the CRA actually said that it should be pretty easy point it out yet no one seems to be able to. CRA loans were not all subprimes nor did they default at the same rates as subprimes. CRA loans that [I]were[/I] subprimes did default at the same rate as subprimes extended by private lenders (non-CRA), but that's the point. Regardless what class of loan they were CRA loans defaulted at the same rates as non CRA loans of the same type. If they were in fact higher risk you would expect them to default at higher rates but that didn't happen. [/QUOTE]
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