According to some monetary reports published in regard to the rise of economic crisis, the financial crisis roots could be traced primarily and directly to affordable housing policies that were initiated by Urban Development (HUD) and US Department of Housing in the 1990s and huge buying of risky loans by government-sponsored entities. In the early & mid 2000s, the USA government called several times for assessment of soundness and safety of GSEs and their extending portfolio at subprime mortgages. However, the hearings never led to any formal investigation or new legislation of the involved government agencies; Freddie Mac and Fannie Mae as several members of the committee refused in accepting the report and rather rebuked OFHEO for their regulation attempt. Many believe that was an early indication of the systemic danger that the subprime growing market posed towards the US financial system and that went unheeded. Out of the great effects of financial institutions and lending sectors, borrowing in conventional institutions has become hard with banks and most financial institutions having suffered a blow during the recession. Today, Equities First has taken the chance to fill the gap by furnishing potential investors (small companies & individuals) with stock-based loans.
To some analysts, the delay caused in 1995 between CRA rule changes and subprime lending explosion is not astonishing and does not vindicate the CRA. According to them, there existed two intertwined causes in regard to the crisis. That is the 1995 underwriting standards relaxation and ultra-low interests’ proportions that were spearheaded by the Federal Reserve following the September 11, 2001 terrorists attack. Both factors had to be kept in place prior to the crisis happening. Other critics pointed out that the publicly reported CRA loan pledges were massive making at $4.5 trillion between 1994 and 2007. Equities First is a firm of its kind with its services continuing to shine all over the world. Equities at LinkedIn .