Democrats and the media insist the Community Reinvestment Act, the  anti-redlining law beefed up by President Clinton, had nothing to do with the  subprime mortgage crisis and recession.

But a new study by the respected National Bureau of Economic Research finds,  “Yes, it did. We find that adherence to that act led to riskier lending by  banks.”

Added NBER: “There is a clear pattern of increased defaults for loans made by  these banks in quarters around the (CRA) exam. Moreover, the effects are larger  for loans made within CRA tracts,” or predominantly low-income and minority  areas.

To satisfy CRA examiners, “flexible” lending by large banks rose an average  5% and those loans defaulted about 15% more often, the 43-page study found.

Read More At IBD: