... the Community Reinvestment Act* book accounts for 7% of the total in residential mortgages, but 24% of the losses.
Congress needs to take a looong vacation.
*The act was designed to encourage more minority lending, and though it doesn't require banks to lend out to shaky borrowers, banks make certain CRA commitments in order to get regulatory approval for acquisitions.
A possible effect of this is that banks wishing to grow via acquisition end up with an outsize volume of these commitments.
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