Friday, February 20, 2009

Media Education

"CRA pushed more minorities into homes and now foreclosures."

Paraphrasing David Faber, CNBC Squawkbox, guest on Hardball with Chris Matthews, February 17, 2009.

Myths have a way of keeping untruths alive, especially when they are pushed by ideological interest groups. Being accurate about the Community Reinvestment Act (CRA) is very important as we redesign our financial regulatory system. It's one of the few tools that has helped pushed reinvestment in neighorhoods.

A few soundbites to memorize:

"Fact: The majority of subprime loans were originated by non-CRA-covered financial institutions. More than 75 percnet of subprime loans were not covered by CRA."

National Community Reinvestment Coalition (NCRC),"CRA Myth and Fact," Reinvestment Works, Winter 2008-2009.

"Federal Reserve governor Randall Kroszner, a conservative economist....says the Community Reinvestment Act isn't to blame for the subprime mess, despite some accusations to the contrary."

"Fed's Kroszner: Don't Blame CRA," Wall Street Journal Online, posted, December 3, 2008.

And another:

"A government effort to promote lending in low- and middle-income areas has not been a significant contributor to the nation’s housing woes, Federal Reserve Board Governor Elizabeth Duke said."

"Fed’s Duke: Community Reinvestment Act Not to Blame for Crisis," Wall Street Journal Online,Posted By WSJ Staff, February 16, 2009.

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