Wow it almost looks like the old political forum has returned. I don't know how the last one ended because I was gone the weekend it was deleted.
As for CRA it did not specify that you have to take risky loans it said you need to apply the same criteria to everyone. So if you are chartered in NYC you can not enact a rule that says you will not grant mortgages to homes between 110th and 130th.
http://www.federalreserve.gov/dcca/cra/
"Nor does the law require institutions to make high-risk loans that jeopardize their safety. To the contrary, the law makes it clear that an institution's CRA activities should be undertaken in a safe and sound manner."
And as for Fannie and Freddie being the main players. 84% of sub prime mortgages were done by the private sector.
Only one of the top 25 sub prime lenders in 2006 was directly subject to the housing law.