Media conservatives baselessly blame Community Reinvestment Act for foreclosure spike
September 30, 2008 2:05 pm ET
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SUMMARY: Several conservatives in the media have recently blamed the Community Reinvestment Act for the current financial crisis -- when, in fact, the CRA does not apply to institutions making the vast majority of troubled loans underlying the crisis. It applies only to depository institutions, such as banks and savings and loan associations. Experts have estimated that 80 percent of high-priced subprime loans were offered by financial institutions that are not subject to the CRA.
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