At first I was confused about who to blame for this monumental financial mortgage mess. But I can see clearly now.
Bill Clinton is responsible.And admits it in his autobiography My Life (Knopf 2004) Look it up from pp. 517-18.
"...One of the most effective things we did was to reform the regulations governing financial institutions under the 1977 Community Reinvestment Act. The law required federally insured lenders to make an extra effort to give loans to low – and modest-income borrowers, but before 1993 it had never had much impact. After the changes we made, between 1993 and 2000, banks would offer more than $800 billion in home mortgage, small-business, and community development loans to borrowers covered by the law, a staggering figure that amounted to well over 90 percent of all the loans made in the twenty-three years of the Community Reinvestment Act."