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.
