Summary: On Special Report, Fred Barnes and Charles Krauthammer echoed other conservatives in claiming that the Community Reinvestment Act and efforts to expand affordable housing are at least in part to blame for the home foreclosure crisis. But as experts have noted, the CRA does not govern the vast majority of subprime lenders.
Sounding a common conservative refrain during the December 22 edition of Fox News' Special Report, Fox News contributors Fred Barnes and Charles Krauthammer each claimed that the Community Reinvestment Act and efforts to expand affordable housing to minorities and low income people are at least in part to blame for the home foreclosure crisis. However, experts have said that approximately 80 percent of subprime loans were offered by financial institutions that are not subject to the CRA, which applies only to depository institutions like banks and savings and loans, and also pointed out that lenders subject to the CRA face stricter regulations than do other lenders.
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