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Sub-prime history.(Letter to the editor)
In analyzing the sub-prime mortgage crisis, Robert VerBruggen starts with 1977's Community Reinvestment Act ("Straw Predators," May 5). He could usefully have gone back another decade, to 1968's Housing and Urban Development Act. This act extended Federal Housing Authority insurance to home-mortgage loans given to low-income, inner-city borrowers. The terms were extraordinary: minimal down payments, often 40 years to pay, 1 percent interest.
These sub-prime borrowers were, however, largely unprepared for home ownership. In 1973, ...
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Source: HighBeam Research, Sub-prime history.(Letter to the editor)