Skip to comments.Obama pushes the housing market into full blown socialism
Posted on 04/03/2013 12:44:21 PM PDT by Starman417
Einstein is proven right again.
Not, not relativity.
Not the grand theory.
Einstein once defined insanity as
Doing the same thing over and over again and expecting different results.
Barack Obama is no stranger to hypocrisy and he clearly knows how stupid his base is. He knows they won't remember anything he says from one day to the next. They certainly won't remember what he said last year, so Obama zombies, pay attention.
Last year the Obama regime basically extorted a settlement from large banks in a mortgage deal. As noted by Investors, Obama blamed everyone except for the real culprits.
Subprime Scandal: Announcing a massive $26 billion mortgage deal with "abusive" banks, the president blamed everybody for record foreclosures except the party most culpable: government.
He blamed lenders:
Speaking Thursday from the White House, Obama scolded "irresponsible" and "reckless" lenders, who "sold homes to people who couldn't afford them."
he blamed buyers
He also cited buyers who bought homes bigger than their budgets,
and he blamed Wall St.
Wall Street bankers who packaged the shaky mortgages and traded them for "profit."
And it was all wrong
"It was wrong," he asserted. And now the nation's "biggest banks will be required to right these wrongs."
So whose fault was it really?
President Clinton fretted that blacks and other minorities could not qualify for mortgages at nearly the same rates as whites and Asians. So Clinton codified more "flexible" underwriting standards in a "Policy Statement on Discrimination in Lending," and entered it into the Federal Register.
At the same time, he set up a little-known federal body made up of 10 regulatory agencies the Interagency Task Force on Fair Lending to enforce the looser standards. It threatened lenders to either ease credit for low-income borrowers or face investigations for lending discrimination and suffer the related bad publicity. It also threatened to deny them expansion plans and access to Fannie Mae and Freddie Mac.
"The agencies will not tolerate lending discrimination in any form," the 20-page document warned financial institutions. The task force enforced these policies throughout the Bush administration.
According to Peter Ferrara, senior fellow at the Carleson Center for Public Policy:
"This overregulation reached the point of forcing lenders to discount bad credit history, no credit history, no savings, lack of steady employment, a high ratio of mortgage obligations to income, undocumented income, and inability to finance down payment and closing costs, while counting unemployment benefits and even welfare as income in qualifying for a mortgage.
"This" he said, "turned into government-sanctioned looting of the banks."
The Justice Department along with HUD, which regulated Fannie and Freddie proved the most aggressive members of the fair-lending task force. Eric Holder, then acting as deputy AG, ordered lenders to actually "target" African-Americans for home mortgages they couldn't otherwise afford. Obama cheered Holder on as an inner-city community organizer who also pressured banks to ease credit for home borrowers.
So what does Obama do in the wake of all this wrong doing? You're not gonna believe it:
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.
Once again a democrat regime seeks to compromise mortgage underwriting standards.
(excerpt) Read more at floppingaces.net...
What could possibly go wrong?
From the article: “Barack Obama is no stranger to hypocrisy and he clearly knows how stupid his base is. He knows they won’t remember anything he says from one day to the next.”\
There’s a reason. Liberals talk, talk, talk, but never listen to anyone. They live in their heads, NOT in reality. They will vote for what makes them feel good, and it’s NOT the taxpaying neighbor that is giving them anything. It’s the Government. Obama knows his people.
I am so happy he is doing this. You can not imagine how happy I am. He’s going to push the big banks toward insolvency.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.