bonnie Posted April 4, 2013 Posted April 4, 2013 Obama administration pushes banks to make home loans to people with weaker credit By Zachary A. Goldfarb, Published: April 2 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. It’s time to stop worrying about a lack of savings and do something about it. 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. 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. Officials are also encouraging lenders to use more subjective judgment in determining whether to offer a loan and are seeking to make it easier for people who owe more than their properties are worth to refinance at today’s low interest rates, among other steps. Obama pledged in his State of the Union address to do more to make sure more Americans can enjoy the benefits of the housing recovery, but critics say encouraging banks to lend as broadly as the administration hopes will sow the seeds of another housing disaster and endanger taxpayer dollars. “If that were to come to pass, that would open the floodgates to highly excessive risk and would send us right back on the same path we were just trying to recover from,” said Ed Pinto, a resident fellow at the American Enterprise Institute and former top executive at mortgage giant Fannie Mae. Administration officials say they are looking only to allay unnecessary hesitation among banks and encourage safe lending to borrowers who have the financial wherewithal to pay. “There’s always a tension that you have to take seriously between providing clarity and rules of the road and not giving any opportunity to restart the kind of irresponsible lending that we saw in the mid-2000s,” said a senior administration official who was not authorized to speak on the record. The administration’s efforts come in the midst of a housing market that has been surging for the past year but that has been delivering most of the benefits to established homeowners with high credit scores or to investors who have been behind a significant number of new purchases. “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.” Quote Everything you do is based on the choices you make. It's not your parents, your past relationships, your job, the economy, the weather, an argument, or your age that is to blame. You and only you are responsible for every decision and choice you make, period ... ... Wish more people would realize this. Quotes by Susan Gottesman
Ted Oplinger Posted April 5, 2013 Posted April 5, 2013 What a great wat to ensure the destruction of the American economy. Frankly, I know of NO nation on earth with a successful economy driven by the equality of outcomes... But Americans seem determined to believe life should be fair for everyone, and everyone should have the same level of prosperity. Cuba did that once, too...Wait, they weren't really a successful economy at that time. Blessings, Quote "As iron sharpens iron, so also does one man sharpen another" - Proverbs 27:17 "The offense of the cross is that the cross is a confession of human frailty and sin and of inability to do any good thing. To take the cross of Christ means to depend solely on Him for everything, and this is the abasement of all human pride. Men love to fancy themselves independent. But let the cross be preached, let it be made known that in man dwells no good thing and that all must be received as a gift, and straightway someone is offended." Ellet J. Waggoner, The Glad Tidings "Courage is being scared to death - and saddling up anyway" - John Wayne "The person who pays an ounce of principle for a pound of popularity gets badly cheated" - Ronald Reagan
Moderators lazarus Posted April 7, 2013 Moderators Posted April 7, 2013 Frankly, I know of NO nation on earth with a successful economy driven by the equality of outcomes... It's not about equality it is about making money. Companies want to make money from everyone. Big profits are made from people that can't pay back. Quote Great spirits have always found violent opposition from mediocrities. The latter cannot understand it when a man does not thoughtlessly submit to hereditary prejudices but honestly and courageously uses his intelligence. Einstein
Ted Oplinger Posted April 8, 2013 Posted April 8, 2013 Originally Posted By: Ted Oplinger Frankly, I know of NO nation on earth with a successful economy driven by the equality of outcomes... It's not about equality is about making money. Companies want to make money from everyone. Big profits are made from people that can't pay back. Oh, Lazarus - it IS about making money - and buying homes - and all the other fluff things of life. It is about making the economic result of everyone's life equal - everyone having equal homes, everyone having equal big screen TV's, everyone driving equal nice cars...and the list goes on. It is all about getting rid of all inequality based upon better results obtained through harder/smarter working - whether in economics, or education, or any other category. Regards, Quote "As iron sharpens iron, so also does one man sharpen another" - Proverbs 27:17 "The offense of the cross is that the cross is a confession of human frailty and sin and of inability to do any good thing. To take the cross of Christ means to depend solely on Him for everything, and this is the abasement of all human pride. Men love to fancy themselves independent. But let the cross be preached, let it be made known that in man dwells no good thing and that all must be received as a gift, and straightway someone is offended." Ellet J. Waggoner, The Glad Tidings "Courage is being scared to death - and saddling up anyway" - John Wayne "The person who pays an ounce of principle for a pound of popularity gets badly cheated" - Ronald Reagan
bonnie Posted April 8, 2013 Author Posted April 8, 2013 Oh, Lazarus - it IS about making money - and buying homes - and all the other fluff things of life. It is about making the economic result of everyone's life equal - everyone having equal homes, everyone having equal big screen TV's, everyone driving equal nice cars...and the list goes on. It is all about getting rid of all inequality based upon better results obtained through harder/smarter working - whether in economics, or education, or any other category. Regards, Seems to me that Bush was blamed for the housing mess that threw the country for a loop,even tho he tried to get the dems to rethink the craziness and stop it. When this fails AGAIN,wonder what predecessor Obama will blame for the greed Quote Everything you do is based on the choices you make. It's not your parents, your past relationships, your job, the economy, the weather, an argument, or your age that is to blame. You and only you are responsible for every decision and choice you make, period ... ... Wish more people would realize this. Quotes by Susan Gottesman
Ted Oplinger Posted April 8, 2013 Posted April 8, 2013 Originally Posted By: Ted Oplinger Oh, Lazarus - it IS about making money - and buying homes - and all the other fluff things of life. It is about making the economic result of everyone's life equal - everyone having equal homes, everyone having equal big screen TV's, everyone driving equal nice cars...and the list goes on. It is all about getting rid of all inequality based upon better results obtained through harder/smarter working - whether in economics, or education, or any other category. Regards, Seems to me that Bush was blamed for the housing mess that threw the country for a loop,even tho he tried to get the dems to rethink the craziness and stop it. When this fails AGAIN,wonder what predecessor Obama will blame for the greed Easy - Bonnie - them wascawwy Wepubwicans trying to continue the Bush policies... Blessings, Quote "As iron sharpens iron, so also does one man sharpen another" - Proverbs 27:17 "The offense of the cross is that the cross is a confession of human frailty and sin and of inability to do any good thing. To take the cross of Christ means to depend solely on Him for everything, and this is the abasement of all human pride. Men love to fancy themselves independent. But let the cross be preached, let it be made known that in man dwells no good thing and that all must be received as a gift, and straightway someone is offended." Ellet J. Waggoner, The Glad Tidings "Courage is being scared to death - and saddling up anyway" - John Wayne "The person who pays an ounce of principle for a pound of popularity gets badly cheated" - Ronald Reagan
Moderators lazarus Posted April 8, 2013 Moderators Posted April 8, 2013 It is about making the economic result of everyone's life equal - everyone having equal homes, everyone having equal big screen TV's, everyone driving equal nice cars...and the list goes on. It is all about getting rid of all inequality based upon better results obtained through harder/smarter working - whether in economics, or education, or any other category. Regards, Corporations drive policy decisions these days and corporations don't treat everyone equally. They make a lot of money by squeezing the poor. If you believe the right wing media's explanation for the 2008 crash you've been played. There are plenty of books that will give you a broader perspective. The Big Short is one. Do you really think the bans stumbled because of government policy? Quote Great spirits have always found violent opposition from mediocrities. The latter cannot understand it when a man does not thoughtlessly submit to hereditary prejudices but honestly and courageously uses his intelligence. Einstein
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