CRA standards aren't lax. CRA loans are prime. If CRA loans are "bad" then every other loan originated by the private market is at best "very bad."

CRA loans are by the definition of credit better quality than every other type of loan. This isn't politics, this is an objective fact. Again, for every year since the inception of the CRA, default rates for all pools of CRA loans are LOWER than every private market origination pool of the same year.

Even with a median salary for the US [$44,389 in 2004] you can still be rated prime for a house appraised under $100k by the definition of credit. This isn't about "giving" money to black people -- median salary combines with low house price to be a prime loan. If the CRA actually was a money gift, those CRA loan pools would have a higher default rate -- but they don't.