Tea Party Patriots Ordinary citizens reclaiming America's founding principles.

Thursday, April 4, 2013

Obama Urges Lenders to Finance Bad Home Loans - Again!

Even though President Obama still tries to blame George Bush for his inheriting a failed economy, mainly due to the housing market crash that was caused by Democrat meddling, manipulating and forcing housing lenders to make poor loans in the name of fairness -- President Obama now wants to do the same thing.

And as the American public was forced to pay for this first "40 Acre's & a Mule"  failure, they will entice the second round of unsuitable buyers with tax-payer backed programs....

From The Washington Post --

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.
And as in part of the cause for the first housing market bust, lenders will be forced into lending to unsuitable buyers through veiled government coercion and veiled threats of discrimination lawsuits....
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.

As this forced government lending failed the first time, the American public will again be forced to bailout another "too big to fail" Obama-induced boondoggle. 

No comments:

Post a Comment

Thanks For Commenting