Mr_Kyle_Barker saidReagan promoted deregulation, the Garn–St. Germain Depository Institutions Act led to a lot of sub-prime lending. Those buyers who couldn't really afford loans took out adjustable rate mortgages, which Garn-St. Germain allowed for.
CRA was to curb redlining, which was a totally different practice than lending. While it did give credit to banks for lending to low income home buyers, Reagan's deregulation further allowed banks to give loans that they knew were high risk. It all comes back to deregulation, which Reagan was a huge proponent of.
"Reagan promoted deregulation,"
In general, yes, but by 1999 Reagan wasn't promoting much of anything other than not pooping his own pants
"The Garn–St. Germain Depository Institutions Act of 1982 (Pub.L. 97–320, H.R. 6267, enacted October 15, 1982) is an Act of Congress that deregulated savings and loan associations and allowed banks to provide adjustable-rate mortgage loans. It is disputed whether the act was a mitigating or contributing factor in the savings and loan crisis of the late 1980s
The bill, whose full title was "An Act to revitalize the housing industry by strengthening the financial stability of home mortgage lending institutions and ensuring the availability of home mortgage loans," was a Reagan Administration initiative.
The bill is named after its sponsors, Congressman Fernand St. Germain, Democrat of Rhode Island, and Senator Jake Garn
, Republican of Utah. The bill had broad support in Congress, with co-sponsors including Charles Schumer and Steny Hoyer. The bill passed overwhelmingly, by a margin of 272-91 in the House.