Posted on 05/14/2014 6:02:50 AM PDT by mac_truck
WASHINGTON—The Obama administration and federal regulators are reversing course on some of the biggest postcrisis efforts to tighten mortgage-lending standards amid concern they could snuff out the fledgling housing rebound and dent the economic recovery.
On Tuesday, Mel Watt, the newly installed overseer of Fannie Mae and Freddie Mac, said the mortgage giants should direct their focus toward making more credit available to homeowners, a U-turn from previous directives to pull back from the mortgage market.
In coming weeks, six agencies, including Mr. Watt's, are expected to finalize new rules for mortgages that are packaged into securities by private investors. Those rules largely abandon earlier proposals requiring larger down payments on mortgages in certain types of mortgage-backed securities.
The steps mark a sharp shift from just a few years ago, when Washington, scarred by the 2008 crisis, pushed to restrict the flow of easy money that fueled the housing bubble and its subsequent bust. Critics of the move to loosen the reins now, including some economists and lenders, worry that regulators could be opening the way for another boom and bust.
(Excerpt) Read more at online.wsj.com ...
“Because one subprime mortgage collapse is never enough.”
Perhaps the Democrats have concluded Hillary cannot run in 2016 for health reasons and know the Republicans will have a high likelihood of winning in 2016 without Hillary in the race. The economy still weak and there are multiple asset bubbles resulting from Fed money printing and the irresponsible fiscal policies of Bush and Obama which has ballooned the federal debt. The Chinese, Russians and Iranians are all working to remove the dollar as the reserve currency. Loss of reserve currency status, high inflation from money printing, and the bursting of asset bubbles could send the economy into an economic collapse that makes 2008 look mild.
Could it be the Republicans are walking into a trap? Imagine they go ahead and nominate Jeb Bush to run against the presumptive Democrat nominee Hillary Clinton. By May 2016 the Democrat and Republican primary races should be settle with Jeb and Hillary at the top. Hillary steps down in mid to late May for medical reasons and basks in the public concern about her well being. The Democrats then scramble and the power brokers settle on Biden who is nominated as the people’s candidate in the “open” convention. Bush is nominated in the Republican convention as expected. Bush goes on to run a decent moderate campaign. A few Biden gaffes, Obama/Biden fatigue, and enough conservatives showing up to keep Biden from being elected are enough to cause Bush to win a narrow victory. In February 2017, a month after the inauguration, Soros working with the Russians and Chinese precipitates a run on the US banking system. The Keynesian monetary levers Bush and the Fed attempt to use don’t work and the banking system collapses plunging the US and the world into a deep economic depression. Bush and the Republican Party are blamed by the media and the people for a generation. The Democrats win overwhelming majorities in the House and Senate in 2018 and use those majorities to block any free market based initiatives to stimulate the economy. In 2020 a bankrupt nation goes to the polls and elects a no apologies Marxist Democrat as President. From that point on demographics control future elections, ensuring one party rule.
Our government and Federal Reserve economic policies since 2000 make a severe economic adjustment a certainty. It is a question of when, not if. If you have the ability to delay the collapse until you are out of power, and those you are indebted to want the collapse and have the power to trigger it, why wouldn’t you time it to your political advantage?
The housing market is dead.
Huge college loans
No jobs, other than part-time
But, hey, the rental market sure is hot. We have arrived at Obamaville.
Lies, damn lies, and HAMP modifications.
You got it. I found this quote by the former FHFA director Ed DeMarco to be interesting.
"Do not confuse weakening underwriting standards and underpricing risk with helping people or promoting market efficiency."
WHAT economic recovery? Is the libtard media STILL not willing to admit there is none ?
The problem is not with lenders making business decisions to make money. The problem is with government backing these loans.
No problem!
Lets work together so you can have the house you deserve.
All the years in prison, we show as working full time.
The bundle of cash you found, will be income.The money you gave to Willy to bring back some stuff; is an investment...
Enjoy your new house!
And don’t forget to vote early and often for team 0bama!
Well said. They never learn, do they? Maybe this is the only thing they have to stave off a much deeper crash, which is almost certainly inevitable.
I agree. All lending should be private. No more FHA, VA, FNMA etc. Capitalism works.
What I stated in my previous post is what the reality is now and has been for over 30 years.
Some people never learn.
“Wait, let me guess... the Democrats are saying, “Yes, but this time it will be different.”
Because now it has more electrolytes!
“Yeah, I makes 2.5 million a years and eyes wants ta live in one of dem big Trump hy risus on Park Ave. Sur I kun eford dit. You don’t giv me dis stinkin loan and youse a racist”
Da lone kamitee of Frank, Dodd and Reno, along wit Cuomo has OK’s yer lone today !
Oh, that's a keeper.
I was back there a couple years ago and the transformation was amazing, things had really turned around.. At least on the west side of town, which was hit harder. Looked like 1980’s Beirut over there.
AZ was an early casualty so an early recovery makes sense. SB1070 didn’t hurt either. Lots of folks got back to work “doing jobs Americans don’t want’.
1) Lots of cheap unqualified lending.
2) No jobs to pay the loan back.
3) Obamacare making part time jobs because of the 40 hour a week penalty.
4) Dollar devaluation
5) Globull Climate change ..heh kidding
6) Miley Cirus losing her twerk maneuver..heh serious
7) Hilary brain damage
8) Too many Sinkholes, potholes, and a..holes
9) SriRacha owner says government is worse than VietKong!
10) Pocohontas (aka Elizabeth Warren) is applying war paint to those indigenous high cheek bones.
Put all ingredients in plastic bag, Shake then Bake!
Got a prison record, we don’t care.
Don’t have a job, we don’t care.
Don’t expect to pay us, THAT’S when we care!
All this regulation was passed when everyone was mad at the banking industry.
The Elizabeth Warren and Barney Frank type of people wrote it. The more crap they pile on; the better they think. Republicans did little to stand in the way.
Smaller banks have been forced to merge or spend lots more money on compliance.
My company is very large and can deal with the garbage easier than many. Lots of good internal jobs in compliance roles.
Those of us on the customer facing sales roles just have to deal with it; and deal with angry customers.
It's hard to keep Phoenix down though. Pretty strong economy here. When the rest of the country was at 5% unemployment, we were at 3%.
Anyhow, I am not sure how sustainable this is. Regardless, I would be nervous about cooling 4500 sq ft. with this administration at the helm.
Good Lord. Even a 12 year old could figure this out. Debt was the problem so debt is the solution? I think he has some Goldman Sachs or JP Morgan suits on his staff wispering in his ear.
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