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

[thundley4]

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.

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.

Wash Times

For being the supposedly smartest president, Obama is incredibly stupid.

These type of loans that the government forced banks to make were the major cause of the current and ongoing recession and caused the financial crisis world wide.

Freddie and Fannie are already f**ked up.

[Dori]

Oh great.  What is the definition of insanity again?

More proof that they want to crash the system.

[Lacarnut]

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. .

[J P Sousa]

Oh great.  What is the definition of insanity again?

More proof that they want to crash the system.

No doubt now, Obama purposely destroying America.
.

[Evil_Conservative]

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...

[Ptarmigan]

Dumb idea.

[JohnnyReb]

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...

Bolded was the way it was before Jimmy Carter came along and said 'red lining' wasn't to be allowed......and then along came "we are the President" Hillary-n-Billary telling Lezbo Reno to sue the banks if they didn't make bad home loans.....and queer ass Bonnie Fwank and Chissie Dodd protected the bad loans from being scrutinized until Chucky Shummer could drop the bomb shell memo at the right time and bust the bubble ...then out popped 'spread the wealth around' Obama to save the day......and here we are again, the same bunch that had to pass a healthcare bill so others that could read could tell them what was in it so they could find out what was in it are going to repeat bad loan history again because they still haven't learned to read a history book.

[DLR Pyro]

No doubt now, Obama purposely destroying America.
.

looking to create something to blame Bush for

[Freeper]

Damn we cut this board too short. Let's cut it again.

[DumbAss Tanker]

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. .

I think it's actually intended to convey an inferred threat..."Of course, if you don't want to make any of these loans, the Civil Rights Division of DOJ may be investigating you for redlining..."

[NHSparky]

Let's see, people who couldn't qualify for a used car loan or furniture from Rent-A-Center were getting stated income loans for $500K-plus houses in CA before 2007.

And they want to go BACK to that???

[DefiantSix]

Dumb idea.

..."the WORST idea in the long, sad history of bad ideas."

And the only thing that makes it worse yet, is that the giant whirling vortex of stupid that is the Dhimmi'Rat Party tried this very stupid idea once before, destroyed the economy with it, and now THEY WANT TO DO IT AGAIN?!?!

[obumazombie]

Damn we cut this board too short. Let's cut it again.

With a short delay I got a good chuckle, and a springboard...
Dammit, this hole and shovel are too small.

[JohnnyReb]

With a short delay I got a good chuckle, and a springboard...
Dammit, this hole and shovel are too small.

Obama, being the super genius that he is, has ordered "handle extensions" for all the government shovels.

[CG6468]

Stupidity continues to reign for the wannabe.

[seahorse513]

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!!

[obumazombie]

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.

[Eupher]

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.

[CG6468]

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.

Of course, after a year or two, their houses are empty because they cannot pay the mortgage, and they move out via the "Midnight Movers."

[obumazombie]

According to Yogi Berra, "It's Deja Vu all over again".

[vesta111]

According to Yogi Berra, "It's Deja Vu all over again".

Owning a house is a money pit.   It is not Just the mortgage that cannot be paid but the town taxes and for those that buy into a co-op the monthly fees.   This income tax that gives one the deductions for, I forget the capital or interest only lasts a few years.

Damn lenders, they are so tricky, yes one can afford the mortgage to them but people get so anxious to buy a home they are not encouraged to take anything  else into consideration.   I never heard of Donner towns until I bought my home, if I had looking back it would have been cheaper to buy in another town. 

When I inquired about the taxes at the town hall, I WAS TOLD $800.00 a year as we rented the land.  No one told us this would add another $500 twice a year as to repair schools somewhere up state.   

This was in 1994, our lot rent was at $99.00 a month soon to go up to today at $400.00 -----When the interest rates on mortgages fell    to 3.5% we got no break as we were locked into a 9% interest rate. 

We were such babes in the woods back then as it seems most of the country is today. Once we lost our federal deduction we faced a choice, refinancing at huge savings and extending the pay off time another 15 years or selling and buying another home. Either way we would be obligated another 15 years or more.

We found we could not now at our age do this, so we worked all the overtime and doubled or at tax time put our return into the mortgage.      We borrowed from our 401K paid off the house and all credit cards except Lowe's, had to have at least one line of credit open.   To our horror we found when you pay off your bills, you no longer have credit.   Few places want to lend anyone one nickel if they figure they will not get interest if someone is going to pay off their bills in 30 days.

Our homeowners insurance just went up $400.00 from what we had been paying, and this is a basic package.   

It doesn't matter if one works 80 hour weeks or gets State Aid, someone , somewhere  is going to reach down into your pocket and find a way to keep one in debt.

[CG6468]

Paraphrasing,

If at first the failure is not big enough, try, try again, until the collapse is total.