Re: Pressure on banks 2 make high risk loans 2 borrowers w/ poor credit: WHAT YEAR did it start & WHO started?
The real estate / housing debacle along with the U.S. credit crunch right now is blamed in part on the folks who started pressuring banks to make loans that the banks sensed might fall into trouble (sub-prime mortgages) because the borrowers were borrowing too much relative to their income, had bad credit, or were buying too big of a house for their budget. This led to the popularization of sub-prime mortgages that eventually fell apart, as some prudent lenders sensed they would and might never have made were it not for the pressure they were being put under to make more loans to almost anyone wanting to get into a house.
So who was it that started this big idea? Who first started pressuring the banks to do this? Was it a President? Was it the head of some agency? Was it community activist groups like ACORN? I think the pressure came from several sources, but I need to know who was the most responsible, and when did they start doing this such that it spread like an ugly rash across the home mortgage market and led to the crisis we are in today.