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Haste Makes Waste: The Lesson of Community Reinvestment And Massive Foreclosure Recovery In America

Washington, D.C. (PRWEB) April 1, 2008 -- In 1977, Congress passed the Community Reinvestment Act (CRA) requiring banks and thrifts to provide credit for home ownership and small businesses to "underserved" populations. These largely include urban communities, racial minorities, and others with poor to marginal credit ratings. "Their disparate exclusion from financing opportunities was considered by many to be a deliberate, racially motivated practice called redlining" reports attorney Michael R. McCray of Congress Against Racism and Corruption in Law Enforcement (CARCLE). Now America's subprime market collapse is being blamed in substantial part on CRA pressures.

"The underlying logic is that in its supposed haste to fund home purchases among credit-unworthy people, the mortgage industry saddled the United States with a predictable foreclosure crisis" explains McCray. As a community developer, McCray quickly retorts that "predatory lending and mortgage fraud are more to blame for the mortgage crises than the CRA which is merely a response to redlining." On behalf of CARCLE, Matthew Fogg interjects that "alternatives certainly exist between redlining and precipitating the mortgage industry debacle that threatens America's economy and global securities markets".

Fogg is a Deputy U. S. Marshal (inactive) and the founder as well as national president of CARCLE. "It takes creativity and aggressiveness to channel investment dollars into economically blighted communities. And those efforts need not morph into predatory lending or mortgage fraud" says Fogg. "Such crime is possible for the same reasons disenfranchised people become its typical victims: because they are hardly empowered to protect themselves or receive assistance from local law enforcement" adds attorney McCray.

"Federal Reserve Governor Randall Krosner picks up on a central theme of mine when he says '(e)ffective consumer protection can help to restore confidence in the mortgage markets . . .', " claims Matthew Fogg. "Ineffective consumer protection", explains Fogg, "equals lax law enforcement, compounded if not enabled by uninformed consumers". "CARCLE is engaging real estate and mortgage industry professionals as well as law enforcement representatives and the general public to combat truly predatory, fraudulent lending with unprecedented intensity" according to McCray, a key campaign leader.

"We must stop the crime destroying subprime credit opportunities while redressing it through appropriate reprieves, bail-outs, and innovative survival tactics" emphasizes Fogg. "Hastily throwing millions or billions of dollars at the problem without preventive training and effective law enforcement is not really a solution; in fact it is a response CARCLE does not endorse" Fogg adds. Attorney McCray concludes with assurances that "America can overcome its foreclosure crisis without abandoning underserved communities or viable community reinvestment and CARCLE has positioned itself to help make that possible."

CARCLE and a sister organization, National Judicial Conduct and Disability Law Project, Inc. (NJCDLP), recently launched and is recruiting members for a Predatory Lending And Mortgage Fraud Task Force. As executive director for CARCLE and NJCDLP, Zena Crenshaw explains that "task force members are to include community activists through which we access Borrower Victims as well as state and federal law enforcement agencies, banks, mortgage companies, real estate professionals, and the like." According to Crenshaw "they should collaborate to increase and enhance the most effective law enforcement strategies for combating predatory lending and mortgage fraud". She says "public awareness and training is also a major part of their efforts".

CARCLE (Congress Against Racism and Corruption in Law Enforcement) helps communities build, enhance, and repair relationships with local law enforcement, ultimately to prevent, control, and reduce crime while accomplishing compatible criminal justice system reforms. www.carcle.us

NJCDLP (National Judicial Conduct and Disability Law Project, Inc.) helps regulate America's judiciary by duly increasing its exposure to professional discipline, civil damages awards, and/or criminal prosecution for the knowing participation of judges in abuse of the American legal system. www.njcdlp.org

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This press release has been reprinted from PRWEB per the terms and conditions of the copyright notice.


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