The Buzz: Did CRA Wreck the Global Economy?
Date Published: 11/06/2008
Author: Buzz Roberts, LISC Senior Vice President for Policy
"The Buzz" on CRA and the global economy, from the November 2008 issue of Novogradac Journal of Tax Credit Housing.
Many of us involved in low-income housing tax credits (LIHTC) know the Community Reinvestment Act (CRA) has brought banks to the table as essential investors and lenders. But a concerted campaign is under way to blame the CRA for the global economic crisis. According to this story, CRA forced banks to make bad loans to minorities and other people with poor credit. That led to foreclosures, then a collapse of credit markets and finally the general economic meltdown. It's a simple, tidy story, except for one thing: the facts don't support it.
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Topics: Housing, Policy
Type: Trade Article