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<blockquote data-quote="FracusBrown" data-source="post: 895459" data-attributes="member: 29360">You have your facts mixed up. Acorn and the dems lobbied for allowing loans to the former unqualified borrowers. They forced lenders to participate. The community reinvestment act (CRA) started the whole mess. &quot;The goal of the community groups was to force Fannie and Freddie to loosen their underwriting standards, in order to facilitate the purchase of loans made under the CRA. Thus a provision was inserted into the law whereby Congress signaled to the GSEs that they should accept down payments of 5% or less, ignore impaired credit if the blot was over one year old, and otherwise loosen their lending guidelines.&quot; &quot;The result of loosened credit standards and a mandate to facilitate affordable-housing loans was a tsunami of high risk lending that sank the GSEs, overwhelmed the housing finance system, and caused an expected $1 trillion in mortgage loan losses by the GSEs, banks, and other investors and guarantors, and most tragically an expected 10 million or more home foreclosures.As a result of congressional and regulatory actions, the percentage of conventional first mortgages (not guaranteed by the Federal Housing Administration or the Veteran&#039;s Administration) used to purchase a home with the borrower putting 5% or less down tripled from 9% in 1991 to 27% in 1995, eventually reaching 29% in 2007.&quot; <a href="http://online.wsj.com/article/SB10001424052748703298004574459763052141456.html" target="_blank">Edward Pinto: Acorn and the Housing Bubble - WSJ.com</a></blockquote>

[QUOTE="FracusBrown, post: 895459, member: 29360"] You have your facts mixed up. Acorn and the dems lobbied for allowing loans to the former unqualified borrowers. They forced lenders to participate. The community reinvestment act (CRA) started the whole mess. [I]"The goal of the community groups was to force Fannie and Freddie to loosen their underwriting standards, in order to facilitate the purchase of loans made under the CRA. [/I][I]Thus a provision was inserted into the law whereby Congress signaled to the GSEs that they should accept down payments of 5% or less, ignore impaired credit if the blot was over one year old, and otherwise loosen their lending guidelines." [/I] [I]"The result of loosened credit standards and a mandate to facilitate affordable-housing loans was a tsunami of high risk lending that sank the GSEs, overwhelmed the housing finance system, and caused an expected $1 trillion in mortgage loan losses by the GSEs, banks, and other investors and guarantors, and most tragically an expected 10 million or more home foreclosures.[/I] [I]As a result of congressional and regulatory actions, the percentage of conventional first mortgages (not guaranteed by the Federal Housing Administration or the Veteran's Administration) used to purchase a home with the borrower putting 5% or less down tripled from 9% in 1991 to 27% in 1995, eventually reaching 29% in 2007." [/I] [URL="http://online.wsj.com/article/SB10001424052748703298004574459763052141456.html"]Edward Pinto: Acorn and the Housing Bubble - WSJ.com[/URL] [/QUOTE]

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