Quote Originally Posted by wickedsolo View Post
The banks were going to get their money regardless. Either the people who took the mortgage were going to pay it back or the government would bail them out, which they did.
Well, that was the end result. But not every bank got money and that was certainly not their intention. And it was nothing close to the amount they lost from bad mortgages. Remember, they make their money on the interest. They don't see interest obey unless the note is getting paid so they have a strong vested interest in making sure they lend money to the right folks AND it gets paid back.

Quote Originally Posted by wickedsolo View Post
What was the point of forcing banks to give out mortgages to folks who couldn't afford it? Who's bright idea was that bill?
The perceived issue was that lesser qualified folks, typically minorities, were being discriminated on by the banks by not approving their applications. The idea was to help minorities get mortgages and it was well-intended enough. It was a bipartisan bill passed back in 1977 and, at first, didn't have the element of enforcement to it (meaning, banks were not getting fined) That was not added to the bill until the late 1990's.

So, to answer your question, it was the federal governments bright idea.