Housing crisis redux
The 2008 melt down of the economy was a lesson. The government learned well and is doing it better this time. A new wave of subprime mortgages is here, more powerful than the tsunami that washed away the worlds economy with the Community Reinvestment Act.
William Tucker informs us in the 7-27-12 issue of the American Spectator that Elizabeth Warren of the Consumer Finance Protection Bureau, created by Dodd-Frank, has announced that the CFPB is adopting a 20 page "Policy Statement of Discrimination in Lending".
The policy statement's position is that to deny a loan on the grounds that the applicant can't repay the money is discrimination if the applicant is black or Hispanic.
Tucker points out that Wells Fargo has just paid $175 million for alleged past discrimination against minority borrowers, along with providing diversity training and sensitivity counseling for it's staff. The Justice Department did not prove any discrimination occurred, but instead relied on statistics showing lower rates of home ownership in minority neighborhoods.
Wells Fargo must also put up $50 million for minorities to use for down payments and closing costs, including up to $15,000 per individual for "Borrower Assistance Grants," and $125 million to as yet unnamed victims of previous discrimination. Any monies left over are to be given to community organizing groups.
Tucker says that almost a dozen banks are under similar investigations. CFPB will also vet the credit bureaus for racial discrimination.
No headlines or political turmoil. The looting and destruction of America moves forward in silence.