Posted on 12/10/2012 6:05:23 PM PST by Nachum
Subprime Scandal: Now that the president's mismanagement of FHA has led to its insolvency, how will he avoid the embarrassment of a bailout? By squeezing banks, how else?
Under Obama, the Federal Housing Administration has increasingly backed new home loans to so-called rebound borrowers who recently defaulted on past mortgages. The agency is allowing lower-income borrowers to get loans just three years after foreclosure with as little as 3% down and lousy credit scores. In fact, a whopping 40% of newer FHA-backed loans are subprime.
The risky lending has led to higher delinquencies. In fact, at 17%, delinquencies on FHA loans are now so high the administration has extended the grace period for repayments on troubled loans to a full year.
Stories of FHA sweetheart loans to repeat defaulters are legion. Take Hermes Maldonado. The Honduras immigrant recently qualified for an FHA loan for a home in the Los Angeles area — despite two prior foreclosures and two bankruptcies.
(Excerpt) Read more at news.investors.com ...
GM is going to need bailing again pretty soon.
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Deja freekin Vu.
The definition of insanity repeating the same mistake and expecting a different result.
Well George Bush can’t take the rap this time, whose fault is it now? I am sure Obama will find someone to blame it on.
By the way this article is written the author must think that Obama actually gives a damn about the solvency of FHA, the banks,401Ks, the student loan program, the country, etc.. I think he is very much mistaken.
He gots to bring home da bacon fer his supporters.
Our worst enemies couldn't have done this much damage to us.
From the Welfare work requirement being destroyed to extended unemployment benefits to student loan forgiveness to ObamaCare. This impostor in the White House is morphing every government program with some responsibility required of the user into a government entitlement program.
This is full blown socialism on the march.
Obama’s Communism Method.
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