AboutTed Nesbitt Expertise I will answer short, to-the-point questions on all aspects of
American politics -- legislative, executive, and judicial for
the federal government and all fifty states. I use the Lexis-Nexis
database for information concerning court cases in the state courts,
the U. S. District Courts, and the U. S. Supreme Court.
I do NOT have the time to work with lengthy problems or to read
and evaluate papers.
Experience I have been politically in a PAC since 1986 and have served state
government in an information capacity since 1980.
I have been a volunteer at the grammar and writing site at allexperts.com for more than two years.
Question Is it true that in the late 1990's, the government passed a bill to encourage banks to make home loans to people in the lower earnings range of our economy? If so, what was the bill number, and when did it become the "rule"?
Answer Bill:
***** FOLLOW-UP ***** I forgot to give you the URL for the act itself:
It was Public Law 95-128, effective October 12, 1977, signed into law by President Jimmy Carter.
The popular title of the law is "The Community Reinvestment Act of 1977." It was intended to encourage single home ownership among minority groups.
There was a revision of the act in 1995.
The problem, which some people knew all along but most members of Congress are just beginning to realize [but who knows? maybe all of them were happy with what was going on, because of the financial contributions being made to many members of BOTH political parties] was that there was a lot of "encouragement" but little, if any "regulation."
That allowed banks and other lending agencies, like Fannie Mae and Freddy Mac, to do whatever they wanted to do.
Search online for "Community Reinvestment Act of 1977" and you'll find PLENTY of information . . . along with many references to the 1995 version.
Unfortunately, for you and all of us, you'll end up with more questions than answers. If there is blame to be given, a legion of people -- Wall Street, Washington, and other places -- will be the recipients.
You've got a lot of reading to do.
Ted Nesbitt
Please take a couple of seconds to evaluate this answer. Your evaluation is the only "payment" I get for my service at Allexperts.
