It’s my take that the CRA revisions put in place by the Clinton administration in 1995 really did fuel a whole host of horrible lending practices, 105% loans to people with no proven credit worthiness whatsoever and so forth.
And many ACORN like organizations sprung up to put pressure on lending institutions, while mortgage “paper” came to be elaborately and arcanely bundled to a point where it wasn’t exactly clear which lending institution actually held some of these mortgages. And “the world” got involved, buying arcanely bundled financial instruments with the insured backing of the US government. And democrats in Congress clearly and unequivocally blocked attempts at reforming the F&F house of cards, as is evident
Here’s a brief article of a successful bank being pressured to make bad loans.
Yes, the Community Reinvestment Act Really Did Help Cause the Housing Crisis
