Obama's Financial Overhaul to Repeat Mortgage Mistakes of Past?

We have still yet to see all the details about Obama's "financial regulatory overhaul," but according to Larry Kudlow, it includes a consumer protection agency that will help enforce the Community Reinvestment Act.

Then there’s the new Consumer Financial Protection Agency. This provision was apparently written by liberal-left Harvard professor Elizabeth Warren, a staunch foe of free markets and an overzealous supporter of consumer-as-victim rights. Among its massive powers, this agency would enforce the Community Reinvestment Act, which has for years forced banks and other lenders to throw mortgage money at borrowers who cannot afford it. And the consumer protection would reach deep into bank supervision as well. What a mess.

In case you've been asleep for the past two years, the Community Reinvestment Act was the single biggest reason why banks were lending to borrowers who had no business owning a home. Thanks to Democrats in Congress, banks were pressured to lend to these subprime borrweres anyway because they had the "right" skin color.