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<blockquote data-quote="Jones" data-source="post: 909301" data-attributes="member: 4805"><p>Requiring banks to comply with the CRA is not the same as requiring banks to make loans to high risk individuals because there is nothing in the CRA regulations that requires banks to make loans to high risk individuals. If you think there is then quote it for us, if you can do that I would certainly concede the point.</p><p></p><p></p><p>No they are not. A subprime loan is a high interest loan given to an individual who does not qualify for the prime rate. CRA loans were loans made in lower class and minority neighborhoods that had previously been redlined. Some were subprime and some were not, it depended on the individual and whether or not they qualified for the prime rate.</p><p></p><p></p><p>Once again there were never any regulations forcing banks to do these things, if you can find them please quote them.</p><p></p><p>It's also worth nothing that the CRA regulations only applied to FDIC insured banks and not to the private lenders like Countrywide who were making the making the majority of subprime loans. These private lenders were under no government pressure to offer subprimes yet they made them a core part of their business model because they were so profitable.</p></blockquote><p></p>
[QUOTE="Jones, post: 909301, member: 4805"] Requiring banks to comply with the CRA is not the same as requiring banks to make loans to high risk individuals because there is nothing in the CRA regulations that requires banks to make loans to high risk individuals. If you think there is then quote it for us, if you can do that I would certainly concede the point. No they are not. A subprime loan is a high interest loan given to an individual who does not qualify for the prime rate. CRA loans were loans made in lower class and minority neighborhoods that had previously been redlined. Some were subprime and some were not, it depended on the individual and whether or not they qualified for the prime rate. Once again there were never any regulations forcing banks to do these things, if you can find them please quote them. It's also worth nothing that the CRA regulations only applied to FDIC insured banks and not to the private lenders like Countrywide who were making the making the majority of subprime loans. These private lenders were under no government pressure to offer subprimes yet they made them a core part of their business model because they were so profitable. [/QUOTE]
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