Let’s make it clear I am not necessarily talking about money lost from this economic disaster; I’m talking about thousands of jobs lost (which also relates to oney), I’m talking about the fabric of our housing market. Architects/Designers start the design process for a client, which generates jobs for Engineers and the title 24 compliance (if you live in California). Those jobs generate jobs within our states and counties which in turn creates revenues for local counties/cities to keep those offices running. I’m talking about the contractors and sub-contractors that need supplies to build. I’m talking about the companies that make those supplies to build or remodel homes; I’m talking about state tax dollars from selling supplies to build, I’m talking about the home owner who spends more money to accessorize their home.

This housing disaster we happen to be in was instigated from not just ignorant desperate Americans who wanted a slice of the great American pie but also by very brilliant key government officials (no names mentioned here since there are so many) preying on those same people. I believe these government officials pushing the need to get poor people into homes they could not afford and other third party individuals who pushed the sub-prime paper loans to enable a individual who didn’t qualify for a home should be held accountable. If they have any conscience what so ever I would think they would feel bad about their part in this disaster, but from personal experience these types of individuals are saying “it’s not my fault their was a legal loop hole, the home owners should have know better”. Even better “It’s just business, nothing personal”, from all of us affected by the above government officials and sub-prime pushers, it is very personal especially when your on the verge of loosing everything beyond your control.

We hear now that we need to focus on a resolution on the sub-prime sector in order to get housing back on track, but we are yet to here how we will help the people who create the jobs in the housing sector; Architects/Designers, Engineers, Builders, Suppliers, etc. These businesses produce a multitude of jobs through a trickle down effect. I recognize we need to focus on the sub-prime issues (cause, and recourse), but by bailing out bad individuals who made bad decisions, and not prosecuting the “sub-prim pushers” you are punishing everyone who did the right thing needed to get a slice of the American dream, and now risks loosing it all.

mddesignhomes.com

This worked very well for over 30 years. According to an independent study of 2006 mortgage loan data conducted by Traiger & Hinckley LLP, CRA actually deterred banks from engaging in the kinds of risky and subprime lending that are provoking the foreclosure crisis. In fact, the findings show:
1. CRA banks were significantly less likely than other lenders to make a high cost loan;
2. The average APR on high cost loans originated by CRA banks was appreciably lower than the average APR on high cost loans originated by other lenders;
3. CRA banks were more than twice as likely as other lenders to retain originated loans in their portfolios; and
4. Foreclosure rates were lower in metropolitan statistical areas with greater concentrations of bank branches.

The conclusion is that CRA actually deterred irresponsible lending. Whether you agree with CRA or not, these are what the numbers show. The Treasury Department, the Office of Thrifts, and the FDIC have all stated that CRA is in no way responsible for the situation we are in today. Please stop spreading this lie or we will never be able to resolve the problem.