Obama’s housing bubble amnesia – wants weaker loans again
The Washington Post reported yesterday that the White House is again pushing banks to make loans to borrowers with weaker credit because many are not participating in Obama’s idea of an economic recovery.
Obama must suffer from amnesia, because this is one of the main reasons for the housing bubble in 2008, which started the “Great Recession” isn’t 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.
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.
The government is trying to get banks to do this with taxpayer backed programs, including those backed by the FHA to insure the loans.
Housing officials are even providing the banks with their assurance that the banks will not be prosecuted or face financial recriminations if the borrowers meet the government standards and then later default!
Obama officials are even offering these loans to people whose homes are underwater (owe more on the home than it is currently worth), and other high risk loans. This is an open invitation to another housing disaster again backed by taxpayer dollars.
Socialists must believe that if you keep doing things the same way, you will obtain different results – it’s called Washington insanity.
Also the race and class envy cards are again being played in the debate just as the housing officials did in 2008 when pressuring banks to make unsecured loans.
“If you were going to tell people in low-income and moderate-income communities and communities of color there was a housing recovery, they would look at you as if you had two heads,” said John Taylor, president of the National Community Reinvestment Coalition, a nonprofit housing organization. “It is very difficult for people of low and moderate incomes to refinance or buy homes.”
Maybe the government should simply tell the banks to accept anything the borrower says about their income and credit rating and give them the loan without even checking whether they are telling the truth.