In today's Forbes, Peter Schweizer has
background on the Congressional Democrats' renewed interest
in expanding the Community Reinvestment Act:
As we try to shake off the financial crisis, here's a bright
idea. Take a law that has led to the writing of an enormous
amount of bad mortgages and expand it. Then take enforcement
away from bank examiners and give it to housing activists.
Sound like a poisonous cocktail? Well, it is what the Obama
administration and Democrats are currently stirring up on
Capitol Hill.
Although in my opinion the jury is still out on the CRA's precise
effects on the housing market collapse, it is plausible that it
played some significant role in our current economic disaster,
and it is also certain that it is the plaything of the recently
discredited ACORN. Those facts should give legislators pause, but
pausing is not something that Congressional Democrats are good at
doing.
