[Rhodes22-list] Brad - A little more on CRAs

[TN Rhodey]

Brad - I said CRA sub-prime defaults  represented less than 50% of sub-prime
defaults. I hadn't checked in a year or so ....your claim blaing CRA made me
curious . .A quick check shows I was way off.  CRAs actually have
performed much better than i remembered. They do not perform as welll as
prime but much better than traditional sub-prime and Alt A.  Do some google
searches on CRA defaults.

 see link from Slim's paper below. Check out the embedded PDF in the article
for breakdown on CRA loans defaults in top 15 US cities. I don't know
anything about the paper but the PDF contains data refuting the claim the
CRA defaults are the problem. I searched hard but could find no claim with
numbers supporting  your position that CRA was the problem. In fact  people
(mostly politicians) making the claim didn't provide numbers and didn't seem
to know what they are talking about......present company excluded of course.
:-)

Do you have NUMBERS  to support your claim that CRA loans are the problem?

http://minnesotaindependent.com/10179/against-all-reason-bachmann-and-others-blame-1977-fair-lending-law-for-adding-to-economic-crisis

 A quick check also confirmed most of the Sub-Prime Mortgage lenders did not
have to be concerned with CRA. If ones reviews the numbers you can come to
the conclusion the CRA loans actually have helped keep foreclosures from
being worse. If these folks were not in a CRA loan they would be in typical
sup-prime ARM with adjustable rates, high fees, and pre-payment penalties.

A while back there was a  Congressional GAO report breaking down
foreclosures in every state by type of loan. I will try to find and post.
The main problems were Alt A Pay Option ARMs, Alt A Stated, Alt A No DOc,
and Sub-prime stated.

Wally

<http://minnesotaindependent.com/10179/against-all-reason-bachmann-and-others-blame-1977-fair-lending-law-for-adding-to-economic-crisis>