The Community Reinvestment Act is back ... but disguised as a different animal. This report should scare the tar out of you. From the Hill:

The Obama administration launched a new initiative Monday aimed at supporting affordable mortgages, backed by the federal government.

Several cabinet agencies announced a new program to provide assistance to state housing financing agencies (HFAs), administered in part by the government-run Fannie Mae and Freddie Mac companies.

The U.S. departments of Treasury and Housing and Urban Development (HUD), along with the Federal Housing Finance Agency (FHFA), will allow state financing agencies to issue new bonds, while Freddie and Fannie will provide the state funds with credit lines, which the federal government will backstop.

The program puts the government in the interesting role of using Fannie and Freddie, which were taken into conservatorship last year in the midst of the mortgage crisis, of administering the credit lines to the state agencies.

Administration officials maintained Monday that the program would not mirror those from Fannie Mae and Freddie Mac in the late 1990s that inflated the mortgage market, saying the state agencies would be more judicious about lending to subprime borrowers.

Government does not learn from mistakes. Government and politicians profit from mistakes. Yet another difference between the government and the private sector.