MrRodgers
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quote:
ORIGINAL: Phydeaux
As for "republican policies"
A proximate cause was the rise in subprime lending. The percentage of lower-quality subprime mortgages originated during a given year rose from the historical 8% or lower range to approximately 20% from 2004 to 2006, with much higher ratios in some parts of the U.S.[3][4] A high percentage of these subprime mortgages, over 90% in 2006 for example, were adjustable-rate mortgages.[5] These two changes were part of a broader trend of lowered lending standards and higher-risk mortgage products.[5][6] Further, U.S. households had become increasingly indebted, with the ratio of debt to disposable personal income rising from 77% in 1990 to 127% at the end of 2007, much of this increase mortgage-related.[7]
When U.S. home prices declined steeply after peaking in mid-2006, it became more difficult for borrowers to refinance their loans. As adjustable-rate mortgages began to reset at higher interest rates (causing higher monthly payments), mortgage delinquencies soared. Securities backed with mortgages, including subprime mortgages, widely held by financial firms globally, lost most of their value. Global investors also drastically reduced purchases of mortgage-backed debt and other securities as part of a decline in the capacity and willingness of the private financial system to support lending.[3]
etween 2004–2006 the share of subprime mortgages relative to total originations ranged from 18%–21%, versus less than 10% in 2001–2003 and during 2007.[28][29] The boom in mortgage lending, including subprime lending, was also driven by a fast expansion of non-bank independent mortgage originators which despite their smaller share (around 25 percent in 2002) in the market have contributed to around 50 percent of the increase in mortgage credit between 2003 and 2005.[30] In the third quarter of 2007, subprime ARMs making up only 6.8% of USA mortgages outstanding also accounted for 43% of the foreclosures which began during that quarter.[31]
By October 2007, approximately 16% of subprime adjustable rate mortgages (ARM) were either 90-days delinquent or the lender had begun foreclosure proceedings, roughly triple the rate of 2005.[32] By January 2008, the delinquency rate had risen to 21%[33] and by May 2008 it was 25%.[34]
According to RealtyTrac, the value of all outstanding residential mortgages, owed by U.S. households to purchase residences housing at most four families, was US$9.9 trillion as of year-end 2006, and US$10.6 trillion as of midyear 2008.[35] During 2007, lenders had begun foreclosure proceedings on nearly 1.3 million properties, a 79% increase over 2006.[36] This increased to 2.3 million in 2008, an 81% increase vs. 2007,[37] and again to 2.8 million in 2009, a 21% increase vs. 2008.[38]
By August 2008, 9.2% of all U.S. mortgages outstanding were either delinquent or in foreclosure.[39] By September 2009, this had risen to 14.4%.[40] Between August 2007 and October 2008, 936,439 USA residences completed foreclosure.[41] Foreclosures are concentrated in particular states both in terms of the number and rate of foreclosure filings.[42] Ten states accounted for 74% of the foreclosure filings during 2008; the top two (California and Florida) represented 41%. Nine states were above the national foreclosure rate average of 1.84% of households....
There are hundreds of causes: a huge run up in household debt; people using their houses as piggy banks. Shadow banks entering the mortgage markets. Moral hazard at the to big to fail banks.
But none of those are republican policies.
Please read for me the federal act that enforces the above and the penalties for violation. You will not be able to...because there is none. The CRA was entirely political and there is NO enforcement regime...NONE !!
The WHOLE CRA thing is unmitigated partisan BULLSHIT.
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RE: Republican Agenda - 
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