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URL:  http://boards.fool.com/warrl-wrote-youre-arguing-the-primacy-of-theory-30429412.aspx

Subject:  Re: CRA clearly did lead to risky lending Date:  12/12/2012  11:47 PM
Author:  CCinOC Number:  659810 of 878184

warrl wrote: You're arguing the primacy of theory over data. Sorry.

Sorry, no.

If disproportionately more CRA loans--which were full doc, fully vetted loans--defaulted over Alt-A loans--which came to be known as liar loans for good reason--there was something else operant in CRA loans.

Here's what it was: CRA loans were given to people who live in so called underserved communities--the same communities that receive disproportionately more entitlements than other communities. It sure wasn't the underwriting guidelines of CRA loans that caused them to default. It was something more organic; something you can't quantify in a loan application due to red-lining laws.

There, I said it.
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