James Carr

James H. Carr is the chief business officer for the National Community Reinvestment Coalition.

Recent Articles

Reform that Hurts Homebuyers

The 2010 Dodd-Frank Act is designed to purge unfair, deceptive, and exploitive financial products and practices from the financial markets. Included in the law is a provision not well known to the general public that could dramatically reduce availability of home-mortgage credit in America. The new law requires that mortgage firms hold a 5 percent share of the risk in loans they originate before the loans can be securitized or sold on the secondary market. This provision, also known as having "skin in the game," is intended to give mortgage originators a stake in the performance of the loans they originate and thereby limit the kinds of reckless and unsustainable mortgage underwriting practices and products that were at the epicenter of the current foreclosure crisis. As Shelia Bair, chair of the Federal Deposit Insurance Corporation, has pointed out, almost 90 percent of the reckless subprime and Alt-A loan originations during the peak origination years of 2005 and 2006 were...