It was a government created problem. There’s a reason Hollywood makes everyone believe it was 100% the banks. Look into the Community Reinvestment Act of 1995 by Clinton and his HUD Secretary Andrew Cuomo. The roots of the housing bubble are there.
But President Bill Clinton, in 1995, added teeth to the CRA. Economists Stephen Moore and Lawrence Kudlow explained: “Under Clinton’s Housing and Urban Development (HUD) secretary, Andrew Cuomo, Community Reinvestment Act regulators gave banks higher ratings for home loans made in ‘credit-deprived’ areas. Banks were effectively rewarded for throwing out sound underwriting standards and writing loans to those who were at high risk of defaulting. If banks didn’t comply with these rules, regulators reined in their ability to expand lending and deposits.
It was a government created problem. There’s a reason Hollywood makes everyone believe it was 100% the banks. Look into the Community Reinvestment Act of 1995 by Clinton and his HUD Secretary Andrew Cuomo. The roots of the housing bubble are there.
https://www.capitalismmagazine.com/2020/01/community-reinvestment-act-reparations-gone-bad/