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Community Reinvestment Act and Fannie/Freddie

The housing problems the US market is facing right now have been apparent for several years.  I thought I understood the root cause as a historic change in lending standards, which caused a vicious cycle of increasing demand and increasing supply.  The demand came in the form new buyers and investors who would not previously have been eligible for mortgages and in outright fraud that was condoned in the rush to generate more business.  Also profit driven, the home building industry, ramped up production to meet the demand.  

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