Fannie Mae and Freddie Mac

The Community Reinvestment Act of 1977 was enacted by a Democratic Congress and signed by Democrat Jimmy Carter, and it was under Democrat Bill Clinton in 1995 that the real regulatory pressure began to build on America’s banks to meet regulatory quotas for loan-making to unqualified buyers in low-income communities – well-meaning social policy (home ownership is nice; it may even be a “right”) enforced by requiring bankers to take the very billion-dollar risks which have now come home to roost . . . (the rest of the story)