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

Tue Sep 30 10:23:08 EDT 2008

I read that already and no that doesn't provide what percent of the defaults
were from CRA bank programs.  If it did maybe I missed it. I was aware that
Fannie Freddie held a bunch of sub-prime paper so I am not sure why you
pointed that out.  I will keep looking for my answer. I am not disagreeing
with you I just never have seen any numbers showing CRA loan performed worse
than typical sub-prime and were a leading cause of the meltdown. In fact my
own experience is the exact opposite. This is why I am curious.

It is a fact that sub-prime mortgage companies did not even have to worry
about CRA. You do understand this right? Your wiki link says the same thing.
Are you trying to make my point or yours? I used to review CRA numbers for
a  large bank in our state. My own experience makes me think the blame on
CRA bank loans is way over blown. Yes they were part of the problem but to
say they are a leading cause just isn't true and really shows a lack of
understanding of how sub-prime loans hit the street. None of the dedicated
sub-prime mortgage lenders had to be concerned with CRA.

I leave my work off this site for good reason but I have actually been a
part of the process in selling loans direct to Fannie and to Hedge Funds. I
had a ringside seat to this. This vantage point is why I was crying chicken
little way back while you were still saying all is well. You stick with your
sources and I will stick with mine. The track record of your sources and
opinions on this is a quite suspect in my view. You may want to re-evaluate.

 I am going back into hiding.....Wally

On Tue, Sep 30, 2008 at 9:06 AM, Brad Haslett <flybrad at gmail.com> wrote:

> Wally,
>
> Buried in here is your answer-
>
> http://en.wikipedia.org/wiki/Subprime_mortgage_crisis
>
> Over half of all subprime mortgages were held by Freddie and Fannie.
>
> Everything related to economics is an opinion.  I think we're in deep,
> deep shit.  But that's just my opinion.
>
> Brad
>
> On Tue, Sep 30, 2008 at 6:58 AM, TN Rhodey <tnrhodey at gmail.com> wrote:
> > Brad - You post stuff as fact when it isyour opinion. I stated i didn't
> know
> > the quality of the source up front...I admitted I wasn't sure of my claim
> of
> > les than 50%. I said i tried to find some different numbers and could not
> > so I asked you if you had any. Hell Brad I said I wasn't sure so I was
> > looking to see some actual numbers. The last numbers I saw showed CRA
> loans
> > out performed typical sub-prime. This was my own experience as well. Heck
> i
> > just asked if you had any numbers to support your claim. I take your
> dodgy
> > response as a"no" If you don't have any numbers to support your claim
> just
> > say so....
> > Wally
> >
> > On Mon, Sep 29, 2008 at 8:59 PM, Brad Haslett <flybrad at gmail.com> wrote:
> >
> >> Wally,
> >>
> >> First, a "truth in posting" statement is necessary.  I'm not going to
> >> waste my time parsing ANY data that has Keith Ellison as the source.
> >> Anyone who knows me well knows that I have no issues with
> >> African-Americans or Muslims.  I have huge issues with 'black whatever
> >> he was converted to the Muslim faith' Keith Ellison.  Call me racist,
> >> bigoted, ignorant, stupid, fill in the blank here ________________,
> >> whatever.  Sorry, I'm not even going to look at anything Ellison
> >> quotes or anything anybody else quotes that is  attributed to Ellison.
> >>
> >> The pdf document is from a law firm defending the CRA, hardly an
> >> objective source.
> >>
> >> Since you seem to enjoy repeating the statement that my sources don't
> >> back up my statements, all I can say is "buy a mirror". You yourself
> >> said you hadn't watched the videos I posted.
> >>
> >> Wally, it doesn't matter if we meet halfway in Nashville, get out the
> >> rulers, and end this argument once and for all. We're in deep shit
> >> either way (but I am looking forward to your numbers from a credible
> >> source and your comments on the videos).
> >>
> >> Brad
> >>
> >> On Mon, Sep 29, 2008 at 4:29 PM, TN Rhodey <tnrhodey at gmail.com> wrote:
> >> > 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
> >> >
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