Background
lIn 1977, Community
Reinvestment Act CRA is signed into law by
President Carter
lDesigned to prevent
discrimination and promote affordable housing in low-income
communities
lEncouraged mortgage
lending through two government sponsored enterprises (GSEs), Fannie Mae, and Freddie Mac
lFannie Mae and Freddie Mac are regulated by Congress.
lFannie Mae buys
mortgages from other companies.
lIt is backed by the
taxpayers for all losses, but keeps all profits.