“The definition of insanity is doing the same thing over and over again and expecting different results”. -Albert Einstein
Have Barney “Bendover” Frank and the rest of his leftist cronies in Congress completely lost their minds or do they really think most of the American people possess the attention span of a typical Daily Kos contributor? Didn’t we just have half the population march on Washington DC in a show of force against the radical agenda this marxist president and his cohorts in Congress are trying to pull over on our country?
Well believe it or not folks these dolts are at it again with this Jimmy Carter era Community Investment Act (which was later given a shot of testosterone by the Bill Clinton administration) that essentially forced banks to provide home loans to low income borrowers with an emphasis on minorities irrespective of the ability of these people to repay the mortgage note. This irresponsibly insane government intrusion into the business affairs of these private lending institutions later became the primary cause of the devastating collapse of the housing market in this country.
Not satisfied with being responsible for half the mortgages flipping upside down due to the millions of foreclosures and plummeting home values Barney Frank and the Democrats are getting ready to ram through H.R. 1479, the new and improved “Community Reinvestment Modernization Act of 2009” which is designed to “close the wealth gap in the United States” between those who work their asses off to get ahead in what used to be our quasi-capitalistic economic environment and those who fail to acquire any desire to do anything beyond sticking their hand out looking for even more taxpayer funded government freebies.
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washingtonexaminer.com–A number of experts believe that aggressive enforcement of the 1970s-era Community Reinvestment Act contributed to the mortgage meltdown, and thus to the greater financial crisis, by requiring financial institutions to lend to unqualified borrowers. Now, the Democratic majority in the House of Representatives is responding to that situation by proposing to expand the scope and power of the Community Reinvestment Act.
This morning House Financial Services Committee chairman Rep. Barney Frank held a hearing on H.R. 1479, the “Community Reinvestment Modernization Act of 2009.” The bill’s purpose is “to close the wealth gap in the United States” by increasing “home ownership and small business ownership for low- and moderate-income borrowers and persons of color.” It would extend CRA’s strict lending requirements to non-bank institutions like credit unions, insurance companies, and mortgage lenders. It would also make CRA more explicitly race-based by requiring CRA standards to be applied to minorities, regardless of income, going beyond earlier requirements that applied solely to low- and moderate-income areas.
Republicans on the committee strongly oppose the plan. “Instead of looking to expand the number of institutions that must abide by Community Investment Act regulations,” California Rep. Ed Royce said in prepared opening remarks at today’s hearing, “I think we should reassess the role this and other government mandates played in the financial collapse and consider scaling it back.”
In private conversation, other Republicans were more emphatic. “There is clearly arguable evidence that the CRA is at the root of this financial meltdown,” says one GOP committee member. “So what do they do? They try to expand CRA.”……..