Monday, April 2, 2012

The Republi-CON 'Carter & the Community Reinvestment Act (CRA) Caused the Housing Crisis' Myth

As I've said over and over and over and over again, it's a lie.

It's a regular Republi-con zombie lie.

And the only way to kill a zombie is with a head shot, preferably followed by a corpse burning.

Read the Washington Post, No, the affordable housing push didn’t cause the subprime crisis, which reference an earlier article, Barney Frank didn’t cause the housing crisis and now a new study published by the St. Louis Federal Reserve Bank, Did Affordable Housing Legislation Contribute to the Subprime Securities Boom?

That study concluded:

"No. [Using] a regression discontinuity approach to investigate whether affordable housing policies influenced origination or affected prices of subprime mortgages . . . [and] merged loan-level data on non-prime securitized mortgages with individual- and neighborhood-level data for California and Florida[, w]e found no evidence that lenders increased subprime originations or altered pricing around the discrete eligibility cutoffs for the Government Sponsored Enterprises' (GSEs) affordable housing goals or the Community Reinvestment Act. Our results indicate that the extensive purchases of risky private-label mortgage-backed securities by the GSEs were not due to affordable housing mandates."