The Subprime Good Guys

The Subprime Good Guys

These mortgage lenders loan to poor people, strengthen communities, and are still making a profit. How do they do it?

Posted Monday, November 17, 2008 - 9:23am

A version of this article also appears in this week's Newsweek. Andrew Murr in Los Angeles and Hilary Shenfeld in Chicago assisted in the reporting.

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Submitted by dmaddock1 on Mon, 11/17/2008 - 7:21pm.

I agree with the assertion

I agree with the assertion that poor people and minorities are not the cause of the current financial crisis. Neither are "rich white guys".

I think you make a great case that responsible sub-prime lending has its place in the market. What I don't get though is that your tone suggests that you are in favor of the CRA. If, as you show, lending to low-income folks living in bad neighborhoods can be profitable, why then do we need the government to mandate that lenders do it?

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