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    Mortgages given to poor people under the 1977 Community Reinvestment Act caused the financial 2008 crisis


    Homeowners from all income levels were involved in the mortgage crisis

    The Federal Reserve Board says that there is no link between the CRA and the subprime mortgage collapse and that homeowners in neighborhoods across the economic spectrum had problems making their payments:

    The Federal Reserve Board has found no connection between CRA and the subprime mortgage problems. In fact, the Board's analysis (102 KB PDF) found that nearly 60 percent of higher-priced loans went to middle- or higher-income borrowers or neighborhoods, which are not the focus of CRA activity. Additionally, about 20 percent of the higher-priced loans that were extended in low- or moderate-income areas, or to low- or moderate-income borrowers, were loans originated by lenders not covered by the CRA. Our analysis found that only six percent of all higher-priced loans were made by CRA-covered lenders to borrowers and neighborhoods targeted by the CRA. Further, our review of loan performance found that rates of serious mortgage delinquency are high in all neighborhood groups, not just in lower-income areas.