Thursday, April 4, 2013

Deja Vu: Obama Pushing Banks To Make Home Loans To The Uncreditworthy

By, Chris Rossini

Apparently, Bush's "Ownership Society" was only Round 1.

Who knew that memories of the housing bust would fade so fast?

The Washington Post reports:
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.
But aren't the bankster weary about doing this AGAIN?

No worries:
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.
Bottom line: The insanity of central planners never ceases to amaze; and American citizens truly are gluttons for punishment.

Look out below...

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1 comment:

  1. the fact that the government must back the loans in case of default is the red flag in all this- banks make plenty of money off mortgages...if they determine the risk as worthy- why is the gov. needed at all? is it all a set up from the jump?