Essentially nothing in that excerpt is true. Felix Salmon and Ryan Chittum hopefully put the stake through this argument, but it keeps appearing (the Chittum post is more comprehensive). To sum them up -- the bad loans at the heart of the meltdown came overwhelmingly from unregulated, non-bank lenders who weren't even covered by the CRA. In addition, the CRA loans did very well. And there's basically not a shred of evidence that the CRA led to the meltdown. And you can't evade that 100% lack of evidence by citing vague "mentalities" and drawing imaginary causal lines constructed entirely of ideology.