Mark Fogarty in his article "This is Why Mortgage Credit Standards Have to Be Lowered" inside the National Mortgage News has produced a well written and even convincing premise that it is in this country's best interests to lower credit standards for minorities so that the mortgage industry in the U.S. won't become irrelevant. The data source for his opinion is a study prepared by the Joint Center for Housing Studies of Harvard University. The graph displayed in this article was presented in Mr. Fogarty's opinion.
The most concise article about the causes of the crisis written during the crisis was written by Peter J. Wallison of the American Spectator in his article entitled, The True Origins of This Financial Crisis. In his article he captured the essence of the problem;The Federal Government mandated credit standards that they enforced through specific banking regulations created to bring more minority buyers into the home ownership pool. The results of the policy were disastrous then and if similar dysfunctional decisions are made to liberalize credit standards so minorities can quality for home ownership as government mandated and controlled primary factor in the nations home loan credit standards, we will have the same outcome.
The mortgage industry doesn't need to be relevant as Mr. Fogarty comments. It needs to be a vehicle to produce home loans for those that pay them back, regardless of their race, color, or creed. If we produce fewer home loans and the housing industry contracts, so be it. Financial resources, left to the market, will go where they can do the most good for the country as a whole. Capitalism, absent crony capitalism, or capitalism directed or constrained by the government's social policies will best serve this country.