Andrew Cuomo, then Bill Clinton's HUD Secretary, held
a press conference on April 6, 1998, explaining a settlement reached
with a major bank on a lending discrimination case based on
the CRA. Cuomo brags about how "this administration will enforce the
law", but he also makes a very telling admission about the $2.1
billion in subprime loans that the bank would offer as a result of the
settlement.
He then admits that there would be "higher risk", and a higher default
rate, on the loans the Clinton administration forced this bank to
make. He also admits that the action forced this bank to lower its
standards on loan qualification as a remedy to supposed discriminatory
action in the past by relying on income and equity requirements. Cuomo
describes everything wrong with subprime lending and reveals the
government's efforts to distort private lending markets to force
"fairness" in outcomes.

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