Analysis of information sources in references of the Wikipedia article "Government policies and the subprime mortgage crisis" in English language version.
"government's involvement, sanctioned by do-good slogans, paved the way for the disintegration of an industry and the subsequent collapse of the economy. …. Government is not and has never been capable of making wise and prudent economic decisions."
Additionally, this guidance will generally not apply to: . . . and community development loans as defined in the CRA regulations that may have some higher risk characteristics, but are otherwise mitigated by guarantees from government programs, private credit enhancements, or other appropriate risk mitigation techniques.
On Page 94, we learn that from 2000 to 2006, it referred a grand total of three institutions to prosecutors for possible fair-lending violations in mortgages.
1. The Community Reinvestment Act of 1977 was irrelevant to the subprime boom, which was overwhelmingly driven by loan originators not subject to the Act.
2. The housing bubble reached its point of maximum inflation in the middle years of the naughties.
3. During those same years, Fannie and Freddie were sidelined by Congressional pressure, and saw a sharp drop in their share of securitization, while securitization by private players surged. (demonstrated by charts for Percentage change in home prices; Share of total residential mortgage originations; Volume of non-agency residential MBS issuance)
