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.Wash Times (http://www.washingtonpost.com/business/economy/obama-administration-pushes-banks-to-make-home-loans-to-people-with-weaker-credit/2013/04/02/a8b4370c-9aef-11e2-a941-a19bce7af755_print.html)
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.
Oh great. What is the definition of insanity again?
More proof that they want to crash the system.
I haven't read too much into this yet, but I do work for one of the top three major banks/mortgage companies in the US. There are some new rule changes coming soon that are actually tightening up the lending process. These new rules will make it so the applicant(s) have to be able to prove ability to re-pay, which is something that our company already looks for. Honestly, every bank should be doing that now after the first housing crash. The DTI ratios are changing and is the minimum qualifying FICO score, IIRC.
I'll have to pull up the news/recent updates on our company website to get some more information. I'll also read about the housing crash 2.0 tomorrow. I'm about to get some sleep... :)
No doubt now, Obama purposely destroying America.looking to create something to blame Bush for
.
I do not know how Odumbo can make a claim that the banks will not face any legal or financial recriminations. Any banker that believes that crap has rocks in his/her head cause when an auditor finds enough bad paper (foreclosures) on their books they will get shut down. .
Dumb idea.
(http://3.bp.blogspot.com/_zxIjsLmBUDI/S2n-GmsBSMI/AAAAAAAAA18/7vLj2ybBt1A/s320/57.jpg)..."the WORST idea in the long, sad history of bad ideas."
Damn we cut this board too short. Let's cut it again.With a short delay I got a good chuckle, and a springboard...
With a short delay I got a good chuckle, and a springboard...
Dammit, this hole and shovel are too small.
Why on God's green earth, would someone want to buy a house, they can ill afford? and worse, why would a lending institution want to lend money to someone who can't afford a mortgage? That makes no sense at all!!It's another example of libs living up to Lewis Carroll's topsy turvy vision.
Why on God's green earth, would someone want to buy a house, they can ill afford? and worse, why would a lending institution want to lend money to someone who can't afford a mortgage? That makes no sense at all!!
Because living responsibly isn't even the remotest thought in their back reaches of their pin heads. These are the people who believe there is a free lunch, that they can get something for nothing.
The sad truth is, they're right. The government is all too willing to provide that free lunch and to give that person more freebies than you and I can even fathom.
In exchange for a vote, of course.
According to Yogi Berra, "It's Deja Vu all over again".
If at first the failure is not big enough, try, try again, until the collapse is total.