A controversial piece housing assistance legislation meant to eliminate housing discrimination played no role in the U.S. foreclosure crisis, a Democratic lawmaker asserted Thursday.

Rep. Luis GutierrezLuis Vicente GutierrezDemocrats rally behind incumbents as Lipinski takes liberal fire Dem leader says party can include abortion opponents DHS to make migrants wait in Mexico while asylum claims processed MORE (D-Ill.), chairman of the House Financial Services Financial Institutions and Consumer Credit subcommittee, said that the Community Reinvestment Act (CRA) played no role in undercutting the housing market, leading to the current economic situation.

The CRA sought to encourage home mortgage loans to individuals of moderate to low incomes, which are seen as having a greater risk for default. Alternatively, the program can serve as a boost to minority homeowners' ability to obtain such loans.