Did the Community Reinvestment Act (CRA) Lead to Risky Lending?

Posted on December 13th, 2012 by admin in Political Economy

According to recent academic research, the answer is YES. This means that the government, as is frequently the case, made a law which produced a nasty, unintended consequence. The CRA caused the banking system to take on excessive risk, and this was fundamental to the housing crisis of 2008.

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