No it didn't. If that were true, the financial crisis would have occurred long before it actually did.<quoted text>
Not talking about subprime loans. The Community Reinvestment Act of 1977 forced banks to lower the requirements by which people could qualify to get a home loan. In other words, the banks were forced to give home loans to people even though they might not be able to repay it. When I bought my first house in 1995, I qualified for MUCH more house than I could ever possibly afford.
CRA effectively said banks couldn't do business in a given community if all they did was take in money to loan out to other communities... what they considered better risk areas. No one lowered the standards.
When GLB passed and Glass-Stegall was repealed, part of what gave banks, insurance and financial companies to "merge" was the need to enforce CRA and for banks to prove they weren't discriminating against people.
Not all banks were or are required to follow CRA. Banks under a certain capitalization or banks that had no desire to merge or grow were not required to follow CRA guidelines.
And again, there was no requirement to make any loans.
If you were lucky to get your house and keep it, good for you. Where I have a problem is when people say it's the BUYER'S fault for taking on a loan bigger than they can afford.
I blame realtors and mortgage brokers for making people BELIEVE they could afford more. Their job is to sell. And sell they did.