Obama administration pushes banks to make home loans to people with weaker credit

Washington Post ^ | 04/03/2013 | By Zachary A. Goldfarb,

[SeekAndFind]

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.

[listenhillary]

Still a lot of bank owned properties in the market? They’re asking the government to flush again.

[HomeAtLast]

Loans to weak credit...I thought that already happened.
Some 5 years ago, a local branch of Citi Financial called me, trying harder than a car dealer to talk me into a home eq loan I didn’t need or want, on my mortgage-free abode. It was totally clear to the agent that my income didn’t justify the loan in any real world, but when he realized it was clear to me as well, he acted personally offended and hung up.
I could swear this sort of fast-and-loose lending was outmoded by now.

[Logical me]

No problem. Banks can give the money away and King Obama will bail them out. Nothing much new here just new voters for his empire.

[Texas resident]

The banks were bailed out for a reason.
Not to keep them solvent, but to buy their loyalty.

“Nice bank ya got there....”

[Eric in the Ozarks]

Black mail.

[HomeAtLast]

Long Island...it’s not the loan, it’s the insurance that’ll break ya!

[Cheerio]

Question: WHAT IF A BANK REFUSES TO LISTEN TO HIM? What can he do?

Same thing Bubba and Janet Reno did - threaten them with "damage" if they don't carry through.

The TRILLION dollar shakedown, August 19, 2010

" Wow, talk about ignorance. The current mess started allll the way back during Clinton’s term by way of the CRA, Barney Frank and Janet Reno threatening banks to make loans to people who had no chance of paying them back.

That’s right, somehow Barney Frank and Janet Reno forced all the banks to give people terrible loans. That’s exactly what happened. Don’t you remember the banks complaining about this on a regular basis? They were saying, “Gosh, we sure don’t want to give these people loans, but since a Congressman is somehow forcing us to, I guess we might as well turn those into collateralized debt obligations, not reveal the basis of the bond to the bond rating agencies, but threaten to go to another bond rating agency and force Moody’s and S&P’s hands so they give AAA ratings to bonds which consisted of mortgages with teaser interest rates that were going to go way up in 2 years and then lead to tons of foreclosures?

Gee, why wasn’t Ken Lewis or Lloyd Blankfein complaining about that in 2005, if that were actually true?

[Red Badger]

If we learn anything from history, it’s that we learn absolutely nothing from history........

Ann Coulter was right: To a liberal, history began at breakfast this morning..........

[SeekAndFind]

RE: Same thing Bubba and Janet Reno did - threaten them with “damage” if they don’t carry through.

Any self-respecting bank would fight back... IN COURT.

[dfwgator]

Rinse...Lather...Repeat...

[Texas Eagle]

WHAT IF A BANK REFUSES TO LISTEN TO HIM? What can he do?

Sic Eric Holder on their racists asses.

[Graybeard58]

More reparations?

[lowbridge]

Bump

[Graybeard58]

Some 5 years ago, a local branch of Citi Financial called me, trying harder than a car dealer to talk me into a home eq loan I didn’t need or want

For a number of years, my mail box was flooded by offers from "financial institutions" wanting me to get a home equity loan from them, not too much anymore.

I have a home equity line of credit at my C.U. with a zero balance. They send me blank checks trying to get me to borrow money. It cost nothing to get the credit line, no appraisal costs etc. and nothing to maintain it. It's available to get cash quickly, if I ever need it.

[PapaBear3625]

Question: WHAT IF A BANK REFUSES TO LISTEN TO HIM? What can he do?

Have the federal government file suit against the bank for housing discrimination, and have as part of the settlement that all officers of the bank be fired.

You know the real issue here is he wants cheap mortgages for his activists, as payoff.

[SeekAndFind]

RE: Have the federal government file suit against the bank for housing discrimination

Any honorable and self-respecting bank would FIGHT BACK all the way to the Supreme Court and make big news out of it.

[KarlInOhio]

George Santayana is up to 1000 RPM in his grave.

[piytar]

Meanwhile, banks are being sued for making predatory loans aka loans to peopl with low credit!

[taxcontrol]

Can Obama be any more of an idiot? This is exactly what fueled the housing bubble in the first place.

“Gee, it didn’t work the first time, lets try it again to see if we do better this time.”

[SeekAndFind]