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Obama Pushing For Banks To Make MORE Risky Loans At Taxpayer Expense
Confounded Interest ^ | 04/03/2013 | Anthony B. Sanders

Posted on 04/03/2013 7:55:32 AM PDT by whitedog57

Administration Encouraging Banks To Approve Riskier Mortgages

Here we go again. This is reminiscent of Clinton/Cisneros/Cuomo’s National Homeownership Strategy that help almost destroy the banking system and left millions of households in foreclosure: nhsdream2

According to the Washington Post (4/2, Goldfarb, 489K),the 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 Post adds that “administration officials say they are working to get banks to lend to a wider range of borrowers by taking advantage of taxpayer-backed programs…that insure home loans against default.” Additionally, 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.”

At least mortgage purchase applications should rise. And IF the banks fall for it, house prices should begin to rise.

But what about Richard Cordray and the Consumer Financial Protection Bureau and their 10 Commandment of Mortgage Lending? Are they asking the Department of Justice to ignore the new laws? OR is this getting taxpayer-backed programs (e.g., Fannie Mae, Freddie Mac and FHA) to open the floodgates?

Ed DeMarco, the acting director of FHFA (the regulator of Fannie Mae, Freddie Mac and the Federal Home Loan Banks) is the proverbial last man standing.

Fool me once, shame on you. Fool us twice, shame on us.

“I can’t believe they will fall for the same thing Clinton did … again!”


TOPICS: Business/Economy; Government; Politics
KEYWORDS: bho44; fannie; fhfa; freddie; mortgage; obama; riskybehavior
Here we go again! Central planning gone wild!
1 posted on 04/03/2013 7:55:32 AM PDT by whitedog57
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To: whitedog57
Obama Pushing For Banks To Make MORE Risky Loans At Taxpayer Expense

What could possibly go wrong?

2 posted on 04/03/2013 8:03:54 AM PDT by RoosterRedux (Get armed, practice in the use of your weapons, get physically fit, stay alert!)
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To: whitedog57
Is if the collapse that benefited Jamie Gorelick tens of millions and got Barney Frank a young boy toy to play grab-ass with was unexpected. Don't impugn their motives. They “meant” well. Right. No attempt to tank the economy or tank Republican chances at re-election. Radically change the system of government in this country. Nope. No. And Obama thinks HIS plans will restore the America that we knew in the 20th century. Bullstalin.
3 posted on 04/03/2013 8:06:47 AM PDT by a fool in paradise (America 2013 - STUCK ON STUPID)
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Comment #4 Removed by Moderator

To: Hardaroni

We have already seen what NINJA loans did under the CRA . Now “Obama and his big momma are going to give all anything they wanna.” More damn socialism.


5 posted on 04/03/2013 8:22:04 AM PDT by Lumper20 (`)
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To: whitedog57

At this point you have to wonder if he just wants to crash the system. I can’t figure anything else out.


6 posted on 04/03/2013 8:24:27 AM PDT by kjo (+)
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To: whitedog57
And just now that the all-cash buyers have scooped up the deals, they want all of the unwashed masses to buy up what's left.

Just inviting all of their constituents to once again form the bottom of the pyramid.

7 posted on 04/03/2013 8:31:21 AM PDT by who_would_fardels_bear
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To: kjo

According to one of Obama’s classmates I heard being interviewed on Rush’s or Lar’s show, yes, they want to crash the system.


8 posted on 04/03/2013 8:33:31 AM PDT by Jack Hydrazine (I’m not a Republican, I’m a conservative! Pubbies haven't been conservative since before T.R.)
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To: Lumper20

It is time to repeal Jimmah Cartuh’s Community Reinvestment Act of 1977!


9 posted on 04/03/2013 8:34:43 AM PDT by Jack Hydrazine (I’m not a Republican, I’m a conservative! Pubbies haven't been conservative since before T.R.)
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