In light of the fact that foreclosure rates have been much higher on ARMs than on fixed-rate mortgages, what do you predict will happen in the future to the proportion of mortgages that are of each type?
In effect, the CRA and the actions of Fannie Mae and Freddie Mac acted to subsidize home purchases by people who otherwise would not have purchased houses. All subsidies must be financed by taxes, implicit or explicit on someone. Who is paying the "taxes" in this case?