Magox Posted April 3, 2013 Share Posted April 3, 2013 Obama administration pushes banks to make home loans to people with weaker credit The Obama administration is engaged in a broad push to make more home loans available to people with weaker credit, an effort that officials say will help power the economic recovery but that skeptics say could open the door to the risky lending that caused the housing crash in the first place. President Obama’s economic advisers and outside experts say the nation’s much-celebrated housing rebound is leaving too many people behind, including young people looking to buy their first homes and individuals with credit records weakened by the recession. In response, administration officials say they are working to get banks to lend to a wider range of borrowers by taking advantage of taxpayer-backed programs — including those offered by the Federal Housing Administration — that insure home loans against default. Housing officials are urging the Justice Department to provide assurances to banks, which have become increasingly cautious, that they will not face legal or financial recriminations if they make loans to riskier borrowers who meet government standards but later default. Officials are also encouraging lenders to use more subjective judgment in determining whether to offer a loan and are seeking to make it easier for people who owe more than their properties are worth to refinance at today’s low interest rates, among other steps. Obama pledged in his State of the Union address to do more to make sure more Americans can enjoy the benefits of the housing recovery, but critics say encouraging banks to lend as broadly as the administration hopes will sow the seeds of another housing disaster and endanger taxpayer dollars. “If that were to come to pass, that would open the floodgates to highly excessive risk and would send us right back on the same path we were just trying to recover from,” said Ed Pinto, a resident fellow at the American Enterprise Institute and former top executive at mortgage giant Fannie Mae. Link to comment Share on other sites More sharing options...
B-Man Posted April 3, 2013 Share Posted April 3, 2013 Its the same as with health care , illegal immigration, etc; the dems motto is "if at first you don't succeed (see fail miserably) try, try again" What could go wrong ? Link to comment Share on other sites More sharing options...
Keukasmallies Posted April 3, 2013 Share Posted April 3, 2013 Encouraging banks to free up mortgage money for prospective buyers with poor credit is POTUS' "economic" tactic to counter the banking industry's current desire to hoard their capital as evidenced by their reluctance to loan money to prospective buyers with good to great credit. Don't even bother to reread the above as it makes as little sense as POTUS' policies on a whole continuum of matters.... Link to comment Share on other sites More sharing options...
Dante Posted April 3, 2013 Share Posted April 3, 2013 Unbelievable. This man's actions continue to speak for themselves. He is simply evil. Link to comment Share on other sites More sharing options...
B-Large Posted April 3, 2013 Share Posted April 3, 2013 Housing officials are urging the Justice Department to provide assurances to banks, which have become increasingly cautious, that they will not face legal or financial recriminations if they make loans to riskier borrowers who meet government standards but later default. So we promise if you make loans by ignoring credit criterion, we won't legally pursue you? Jesus Christ, I know the economy is not gang busters, but lets not make the same mistakes again... Link to comment Share on other sites More sharing options...
Dante Posted April 3, 2013 Share Posted April 3, 2013 Housing officials are urging the Justice Department to provide assurances to banks, which have become increasingly cautious, that they will not face legal or financial recriminations if they make loans to riskier borrowers who meet government standards but later default. So we promise if you make loans by ignoring credit criterion, we won't legally pursue you? Jesus Christ, I know the economy is not gang busters, but lets not make the same mistakes again... Obama is either really stupid or he is up to no good. What do you think it is? Link to comment Share on other sites More sharing options...
Doc Posted April 3, 2013 Share Posted April 3, 2013 Obama is either really stupid or he is up to no good. What do you think it is? Yes. Link to comment Share on other sites More sharing options...
Chef Jim Posted April 3, 2013 Share Posted April 3, 2013 Encouraging banks to free up mortgage money for prospective buyers with poor credit is POTUS' "economic" tactic to counter the banking industry's current desire to hoard their capital as evidenced by their reluctance to loan money to prospective buyers with good to great credit. Don't even bother to reread the above as it makes as little sense as POTUS' policies on a whole continuum of matters.... Banks are reluctant to loan money to prospective clients with good credit? Really?? Where are you getting that from? If the government wants to help the economy through the real estate market then come up with some incentives to sell. That's the big challenge now, lack of inventory not qualified buyers. At least it's that way here in the bay area. Link to comment Share on other sites More sharing options...
KD in CA Posted April 3, 2013 Share Posted April 3, 2013 Obama is either really stupid or he is up to no good. What do you think it is? Push for another bubble ---> Collect big bucks from appreciative wealthy friends who make a killing ----> Convert that and empty "recovery" rhetoric into another successful election cycle for the party -----> Bail out before the next crash -----> Blame "Wall Street" and CEO's salaries for that crash ------> rile up stupid people against "the rich" without pointing out who are really pulling the strings ---------> win another election cycle for the party -----------> wash, rinse, repeat. Link to comment Share on other sites More sharing options...
GG Posted April 3, 2013 Share Posted April 3, 2013 There's a lot of economic validity in opening up credit for people with poor credit. The big issue with the previous bubble wasn't the lending but how that lending got funded. Of course the amateur wants it both ways. He wants the lending spigot to open up, yet at the back of the house Justice is still searching for villains. No one will step up the risk until the administration calls off the dogs. Link to comment Share on other sites More sharing options...
B-Large Posted April 4, 2013 Share Posted April 4, 2013 Obama is either really stupid or he is up to no good. What do you think it is? I think he feels the heat of a recovery that is tinkering along. If you get housing back up and breathing, it makes greases the gears and we start picking up steam.... My frustration is not with doing something, its doing the wrong things.... Artificially boosting home purchasing again is not doing it right... Immigration reform, real changes to Medicare and Medicaid, getting to an easy, makes sense tax code makes sense... Democracies are great at dealing with problems, not so great at dealing with them before thy happen. Link to comment Share on other sites More sharing options...
DC Tom Posted April 4, 2013 Share Posted April 4, 2013 Obama is either really stupid or he is up to no good. What do you think it is? Stupid. Don't forget, the official story is that the banks took advantage of people by lending them money to those who couldn't pay it back, and then acted irresponsibly with the money they'd loaned out. Never mind that makes no sense whatsoever. It's the official story, and people believe it...so it follows that you can relax the standards to lend to high-risk borrowers, as long as you make sure the banks aren't irresponsible with the loans that'll never get paid back. Never ascribe to malice, that which can be explained by simple and obvious idiocy. Link to comment Share on other sites More sharing options...
Dean Cain Posted April 4, 2013 Share Posted April 4, 2013 As if $40 trillion in private sector debt was enough, Obama and the neoliberal Chicago school of economists want to expand this debt bubble. Link to comment Share on other sites More sharing options...
3rdnlng Posted April 4, 2013 Share Posted April 4, 2013 "Obama pledged in his State of the Union address to do more to make sure more Americans can enjoy the benefits of the housing recovery," If Obama actually said this it is one of the most disingenuous statements he has ever made. How the !@#$ does a housing recovery help a buyer? It just tells you that he'll let anything pass through his fat, bullschitting lips. Link to comment Share on other sites More sharing options...
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