Posted on 04/03/2013 7:20:03 AM PDT by blam
Obama Is Pushing Banks To Make More Home Loans To Borrowers With Poor Credit
Brett LoGiurato
April 3, 2013
The Obama administration is readying a push to get banks to make more home loans available to individuals with weaker credit, The Washington Post's Zach Goldfarb reports.
It's a push that walks a tightrope, since it is expected to help boost the continuing economic recovery immediately but risks opening up the shaky lending that led to the housing crash. Obama's plan would provide for more lending to individuals such as young people buying their first homes, as well as people whose credit has been damaged by the recession.
More details from Goldfarb:
[A]dministration 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.
(snip)
(Excerpt) Read more at businessinsider.com ...
I was thinking about calling them and asking if they'll take a credit card as payment, hee, hee.
Community Reinvestment Act part 2
The universe is upside down. Obama apparently wants to ‘take us back to the same policies that got us in this mess’.
Here we go again. Same old ****, different year.
The first mortgage crash worked out well for him politically, why not create another one?
Nothing like repeating the same mistake that put us in this mess to begin with.
Why not call his friend Barney Frank and ask him how to do it.
What could possibly go wrong?
< / subprime >
I saw this article this morning and was literally speechless... Are they that f**king stupid or that arrogant? Good lord I can’t believe they are doing it AGAIN.
Just wow....
If at first you don’t succeed, fail again....
That worked great when Bush did it.
I was lucky, I bought my house in the late 1990s so the 2007 to 2009 collapse didnt hurt me.
In fact maybe this bubble I will sell and rent if I can time it right.
I guess this what the clueless voted for.
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.
hahahaha we won’t prosecute you (bull) but you can eat the loss!
The closer told us that the government is loaning this money to the banks based on "new business" they must be generating. Our loan is the type they want because we already have a proven record of payment so by doing a Re-fi with us, they get to claim "new business" because it is handled exactly like a new loan. The old one is closed out, new one is generated. Sounds like a back room deal to me, doesn't it?
_____
Sounds like the definition of insanity to me.
Word for word what I was going to post. Even CNBC host was skeptical of this plan. What is that definition of insanity again?
Same old $&*: and should be perfectly timed to blo@w up in the face of the GOP while they parrot “main street vs wall street”..
This is what casued the last economi collapse. Does he want another one?
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