By: Mike Huckabee
“You have to give the Democrats props for successfully sending the housing crisis down the memory hole. From their campaign rhetoric, you’d think the so-called “failed policies of the past” were all Republican ideas like smaller government and lower taxes. No, the economic crisis had nothing to do with the housing bubble that began with a massive Democratic push to force banks to give home loans …to people who couldn’t qualify for them. But with terrible timing for the Democrats, that inconvenient truth has burst out of the crypt and back into the news, just as they were convening in Charlotte.
Yesterday, the Daily Caller revealed some previously unpublished court information about a landmark case that many consider the fuse that set off the subprime mortgage boom and eventually, the economic meltdown. It was a 1995 discrimination lawsuit against Citibank, on behalf of a group of African-Americans who claimed they couldn’t get loans because of their race. It was part of a coordinated effort at the time by progressive groups. The banks didn’t want to be sued or accused of racism, so they loosened requirements for credit history and down payments. What the Daily Caller discovered is that among the original plaintiffs in that case, there was a startling loan failure rate. Out of about 186 homebuyers, roughly half have since gone bankrupt or received one or more foreclosure notices. As few as 19 still own homes with clean credit ratings. Even some of the plaintiffs now say the banks never should’ve made those loans.
Enjoy Subprime Lending by Enjoy Banking (Photo credit: SliceofNYC)
And here’s the kicker: the lead attorney on that case that prompted banks to start making home loans to people who couldn’t qualify for them was a young Chicago community activist named Barack Obama.”