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Obama Wants More Home Loans For Bad Risks

From a surprisingly skeptical Washington Post:

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

By Zachary A. Goldfarb | April 2, 2013

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.

The hell you say! Of course, none of this is really new. We have reported on this effort from the Obama administration many times before over the last four years.

In fact, the pressure on banks to make bad loans has never really stopped. The only real news here is that the Washington Post is reporting it. And that they even sound a little skeptical about the whole thing.

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.

"Much celebrated housing rebound." Well, maybe there is a rebound in the Washington, DC area. But they never were affected 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…

What a surprise. They are pushing for more government dependency.

But why not? Maybe owning a house should be the next new civil right.

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…

Whereas these banks will be punished if they don’t make politically correct bad loans.

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…

Yes, that is what is needed. More subjective judgment. Based on voter registration and melanin content.

“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…

And never mind all of Obama’s promises that he was going to make sure that there would never be another financial meltdown like we just had. Instead, it’s almost as if Obama is asking for the keys to the car that the Democrats drove into the ditch.

This article was posted by Steve on Wednesday, April 3rd, 2013. Comments are currently closed.

3 Responses to “Obama Wants More Home Loans For Bad Risks”

  1. Petronius says:

    Evil never sleeps.

    Here we have the same gang of lowlifes who always feed off the misery they have created, breaking the rules, bending the laws, fomenting troubles, and deepening the divisions wherever they can.

    First they threaten the banks, forcing them to make subprime loans. Then (after the meltdown) they punish them with Dodd-Frank for having made subprime loans. Then they threaten them for not making more subprime loans when Dodd-Frank prevents them from making practically any loans at all. While the Fed drives down interest rates to zero so that the banks’ net interest margin is about two percent, pushing the banks to the brink.

    Is America a great country or what?!

  2. GetBackJack says:

    We took this ride already … and it hurt …

  3. Liberals Demise says:

    Whip that dead horse.

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