Obama's Role in the Sub Prime Mortgage Crisis

Barack Obama's Role in the Sub Prime Mortgage Crisis

Barack Obama, lead Attorney for ACORN, successfully sued Citibank in 1994 under the Community Reinvestment Act (CRA) forcing banks to initiate more sub-prime loans nationwide, helping fuel the Sub Prime Loan Disaster.

President Clinton gives a brief description of the Community Reinvestment Act (CRA).

Investor's Business Daily added:
The revisions also allowed for the first time the securitization of CRA-regulated loans containing subprime mortgages. The changes came as radical "housing rights" groups led by ACORN lobbied for such loans. ACORN at the time was represented by a young public-interest lawyer in Chicago by the name of Barack Obama. (Emphasis, mine.)

Bad Loans & ACORN - Obama's tie to all of it

The Community Reinvestment Act (CRA) is a United States Federal Law designed to encourage commercial banks and savings associations to help meet the needs of borrowers in all segments of their communities, including low and moderate-income neighborhoods. Congress passed the Act in 1977 to reduce discriminatory credit practices against low-income neighborhoods, a practice known as redlining. President Clinton expanded the program in 1995 after the ACORN sued Citibank in which then Community Organizer Barack Obama acted as the lead attorney for ACORN in the lawsuit against Citibank.

What Caused the Sub Prime Morgage Collapse?

This video shows that players in the Sub-Prime Mortgage Collapse. From the initiation of legislation in 1977 of the Community Reinvestment Act (CRA) under President Carter to the expansion of the CRA under Clinton. It also shows the efforts and warnings to fend off the crisis that fell on deaf ears.

Buycks-Roberson v. Citibank - Lead Attorney Barack Obama

Case Name
Buycks-Roberson v. Citibank Fed. Sav. Bank Fair Housing/Lending/Insurance
Docket / Court 94 C 4094 ( N.D. Ill. ) FH-IL-0011
State/Territory Illinois

Case Summary
Plaintiffs filed their class action lawsuit on July 6, 1994, alleging that Citibank had engaged in redlining practices in the Chicago metropolitan area in violation of the Equal Credit Opportunity Act (ECOA), 15 U.S.C. 1691; the Fair Housing Act, 42 U.S.C. 3601-3619; the Thirteenth Amendment to the U.S. Constitution; and 42 U.S.C. 1981, 1982. Plaintiffs alleged that the Defendant-bank rejected loan applications of minority applicants while approving loan applications filed by white applicants with similar financial characteristics and credit histories. Plaintiffs sought injunctive relief, actual damages, and punitive damages.

U.S. District Court Judge Ruben Castillo certified the Plaintiffs’ suit as a class action on June 30, 1995. Buycks-Roberson v. Citibank Fed. Sav. Bank, 162 F.R.D. 322 (N.D. Ill. 1995). Also on June 30, Judge Castillo granted Plaintiffs’ motion to compel discovery of a sample of Defendant-bank’s loan application files. Buycks-Roberson v. Citibank Fed. Sav. Bank, 162 F.R.D. 338 (N.D. Ill. 1995).

The parties voluntarily dismissed the case on May 12, 1998, pursuant to a settlement agreement.
Plaintiff’s Lawyers Alexis, Hilary I. (Illinois)
FH-IL-0011-7500 | FH-IL-0011-7501 | FH-IL-0011-9000
Childers, Michael Allen (Illinois)
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Clayton, Fay (Illinois)
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Cummings, Jeffrey Irvine (Illinois)
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Love, Sara Norris (Virginia)
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Miner, Judson Hirsch (Illinois)
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Obama, Barack H. (Illinois)
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Wickert, John Henry (Illinois)
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