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Conclusions found:
The FCIC found that Fannie and Freddie were contibutory but not the primary cause. This was evidenced by the fact that the GSE Mortgage Securities maintained their value throughout the crisis (unlike a lot of mortgage securities found in the rest of the financial sector, at companies like GE, AIG, BoA, etc)
The conclusion being that Fannie and Freddie as GSEs followed the market practices established by private lenders, wall street firms, and banks.
The other conclusion related to CRA presented some major findings.
The first was that only 6% of all so called high-cost/subprime loans had any connection to the CRA law.
The second was that in neighborhoods where CRA loans were made, loans in the same neighborhood not done under CRA law were twice as likely to default as CRA loans.
One other source I'd like to put up.
http://www.rics.org/site/download_feed.aspx?fileID=6979&fileExtension=PDF
"The global credit crunch, and subsequent economic crisis, was, in the final analysis, triggered by real estate and the bursting of an asset price bubble. This of itself would not have been catastrophic had property not been abused through unwise leadership and the application of game theory to risk management, leading to the creation of an inverse pyramid of debt and insurance products which Warren Buffet so eloquently described as "financial weapons of mass destruction".
The key here is inverse pyramid. What causes the inverse pyramid to fail is all the items built on top of it. Obviously, if it was built like a regular skycraper, the foundation would be large and suitable for it. The financial sector decided they'd rather build a structure that had no hopes of surviving should their be headwinds of any kind ever.
