It wasn’t just the Community Reinvestment Act that got us into this mess.
The problem wasn’t merely that HUD under Mr. Cuomo was raising the volume of risky loans for which taxpayers were guaranteeing. HUD was also encouraging a dangerous decline in underwriting standards at these government-sponsored enterprises (GSEs). Says former Fannie Mae chief credit officer Edward Pinto, “HUD commissioned much research aimed at forcing the adoption of more flexible lending standards by the GSEs.”
WSJ article, “Prosecutor, Charge Thyself : Andrew Cuomo has more to answer for than does Bank of America.”