All -- it's rare I get to connect my MF experience with my years working in the US mortgage market (Fannie Mae). But thought I'd share a brief analysis I did using data from early on in the crisis that showed that, at least at Fannie Mae (the largest mortgage holder at the time, with about 25% of market share), government mandates to increase lending to minorities and the poor did not significantly contribute to the subsequent portfolio meltdown. Instead, the biggest culprit was a different sort of high-risk loan (Alternative-A, aka Alt-A) that actually tended to have a lower portion of minority/poor households than the portfolio average. That these loans came to be conflated with minority lending is unfortunately not a coincidence, but the result of a concerted effort by right wing politicians & think tanks.
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