Friday, January 04, 2013


A group of researchers at the NBR have released a paper that shows there were some bad effects of the Community Re-investment Act but nothing dramatic:
For example, loans made within CRA-target tracts in the quarter following the initiation of a CRA exam have a 0.8 percentage point higher 90-day delinquency rate within two years of loan origination, representing a 21 percent increase relative to the average delinquency rate.
This amounts to a delinquency rate increase from 4.0% to 4.8%.

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