Lawmaker says controversial homeowner law not to blame for foreclosures
A controversial piece housing assistance legislation meant to eliminate housing discrimination played no role in the U.S. foreclosure crisis, a Democratic lawmaker asserted Thursday.
Rep. Luis Gutierrez (D-Ill.), chairman of the House Financial Services Financial Institutions and Consumer Credit subcommittee, said that the Community Reinvestment Act (CRA) played no role in undercutting the housing market, leading to the current economic situation.
The CRA sought to encourage home mortgage loans to individuals of moderate to low incomes, which are seen as having a greater risk for default. Alternatively, the program can serve as a boost to minority homeowners’ ability to obtain such loans.
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