AI sucks, but at least it makes it a ton easier to respond to these zombie lies:
Banks were generally not forced to make loans they didn't want to. While the federal government did implement policies encouraging homeownership for underserved communities—such as the Community Reinvestment Act (CRA)—major financial institutions willingly created and issued subprime mortgages. They did this to generate substantial profits through loan origination fees and packaging risky loans into mortgage-backed securities to sell to investors.The narrative of forced lending stems largely from debates surrounding the CRA. While the CRA did encourage banks to lend in low- and moderate-income neighborhoods, numerous economic analyses—including reports by the Federal Reserve Bank of St. Louis and various academic studies—have concluded that the CRA was not the primary cause of the subprime crisis. Most of the high-risk, subprime loans were made by non-bank lenders and institutions not heavily bound by CRA requirements.Ultimately, the decision to loosen lending standards and issue loans to borrowers who ultimately defaulted was driven by the private sector's pursuit of short-term profits and deregulation.
Keep asking why?
Why did we have a housing crash in 2008?
Subprime lending
when did sub prime lending start?
Early 90s
why did it start? Political pressure to give riskier customers loans bc it was “discriminatory” to use good credit info.
When banks are responsible and use good information to give loans like credit score and debt to income they get called racist.
when they give loans to bad customers and jack up interest rates to ocercome the risk they get called greedy.
they found a way to bundle the risk and make money. Then it popped.
Let the GD free market work itself out we will always be ok. Not always great but always trending up over the long haul. ALWAYS.
