Community Reinvestment Modernization Act of 2009

Good old Barney Frank at it again. This time, it comes to us with the name of H.R.1479. A hearing was held on 09-16-09 for the “Community Reinvestment Modernization Act of 2009.”

Wealth Distribution At Its Finest

The purpose of H.R.1479 (Community Reinvestment Modernization Act of 2009) is to “to close the wealth gap in the United States” by increasing “home ownership and small business ownership for low and moderate-income borrowers and persons of color.”

Talk about racism. Do “persons of color” NOT fall into the low and moderate income borrowers mentioned above as well as persons “without” color? Actually, that’s not the point of this exercise, just an example that racism does exist.

H.R.1479 would extend strict lending requirements to non-bank institutions like credit unions, insurance companies, and mortgage lenders. It would also be highly race-based as CRA standards would be applied to minorities, regardless of income. Before, “race” was not taken into consideration. Rather, CRA standards were applied to low and moderate-income borrowers. Sound familiar?

Question: If a person person of color is not a low income borrower and not a moderate income borrower, what are they? Are they a high income borrower? Do they have no income at all?

Let’s Take A Walk Down Memory Lane

The CRA is why we had a housing meltdown which led to our economic collapse. Is there anyone on the PLANET, over the age of 18, who does not know that? Apparently Barney Frank forgot.

1. The original Community Reinvestment Act was passed in 1977, under President Jimmy Carters watch by Congress. This Act was to stop discriminatory lending practices by banks to poor people. That was a good cause and very much needed.

2. The Clinton administration, alongside of ACORN (yep, Association of Community Organizations for Reform Now) pressured banks to loan under qualified and unqualified individuals.

3. This led to sub-prime loans. (Feeling anxious yet?)

4. In 1992, Congress and HUD blackmailed pressured Fannie Mae and Freddie Mac to purchase up these sub-prime loans as a means of risk diversification.

The result? 3-Million Foreclosures in 2008, up 81% from the year before. And the US is on path for 2009 to be equally as devastating. At this point, the foreclosure numbers are due to the elevating unemployment rates and it seems the “powers that be” are still not listening. It seems this administration is far more interested in spending money or putting cutsey twists on failed “ideas” than creating long term jobs. But the American people aren’t having any of that nonsense. If you want to impress us President Obama, help us instead of yourself.

In Fannie Mae’s Patron Saint, a 2008 opt-ed article within the Washington Journal the final paragraph hits the nail on the head:

“Mr. Frank has had many accomplices from both parties in his protection of Fan and Fred. But he was and is among the most vociferous and powerful. In any other area of American life, this track record would get a man run out of town. In Washington, he’s hailed as a sage whose history of willful error will be forgotten faster than taxpayers can write a check for $200 billion.”

It’s really not a wonder why the current administration has not only continually failed on every avenue they have taken. It’s also no big surprise that this same admistration has destroyed all hope that millions of Americans had when they voted for “Hope & Change”. The real thing we must all wonder, no matter what our party affiliations are is how deep does the rabbit hole go?

Morpheus: The Matrix is a system, Neo. That system is our enemy. But when you’re inside, you look around, what do you see? Businessmen, teachers, lawyers, carpenters. The very minds of the people we are trying to save. But until we do, these people are still a part of that system and that makes them our enemy. You have to understand, most of these people are not ready to be unplugged. And many of them are so inured, so hopelessly dependent on the system, that they will fight to protect it.

Morpheus: After this, there is no turning back. You take the blue pill – the story ends, you wake up in your bed and believe whatever you want to believe. You take the red pill – you stay in Wonderland and I show you how deep the rabbit-hole goes.