I am sure the Republicans will love this just as they did when Bush did the same thing and anything that impacts them in anyway is a good cause for government action.
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Obama Is Pushing Banks To Make More Home Loans To Borrowers With Poor Credit
http://www.businessinsider.com/obama-home-loans-credit-white-house-2013-4
The Obama administration is readying a push to get banks to make more home loans available to individuals with weaker credit, The Washington Post's Zach Goldfarb reports.
It's a push that walks a tightrope, since it is expected to help boost the continuing economic recovery immediately but risks opening up the shaky lending that led to the housing crash. Obama's plan would provide for more lending to individuals such as young people buying their first homes, as well as people whose credit has been damaged by the recession.
More details from Goldfarb:
http://www.sodahead.com/united-states/it-was-under-this-bush-administration-incentive-program-that-most-of-these-loans-that-are-now-going/question-3610939/?link=ibaf&q=bush%20administration%20encouraged%20bad%20loan
It was under this Bush Administration incentive program that most of these loans, that are now going bad, were created. For a couple years, the Bush Administration touted their success in encouraging more "creative mortgages" that allowed people to become homeowners. They also routinely pointed to the housing numbers to show that their economic policies were working to keep the U.S. economy out of a recession. Bush even personally took credit in speeches for the fact that there were more "creative" loan products that were allowing people who would otherwise have not been able to do so to get loans. The Bush Administration even pushed a "Zero-Downpayment Initiative" to try to allow people to get mortgages with no money down.
......
Obama Is Pushing Banks To Make More Home Loans To Borrowers With Poor Credit
http://www.businessinsider.com/obama-home-loans-credit-white-house-2013-4
The Obama administration is readying a push to get banks to make more home loans available to individuals with weaker credit, The Washington Post's Zach Goldfarb reports.
It's a push that walks a tightrope, since it is expected to help boost the continuing economic recovery immediately but risks opening up the shaky lending that led to the housing crash. Obama's plan would provide for more lending to individuals such as young people buying their first homes, as well as people whose credit has been damaged by the recession.
More details from Goldfarb:
[A]dministration 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.
...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.
http://www.sodahead.com/united-states/it-was-under-this-bush-administration-incentive-program-that-most-of-these-loans-that-are-now-going/question-3610939/?link=ibaf&q=bush%20administration%20encouraged%20bad%20loan
It was under this Bush Administration incentive program that most of these loans, that are now going bad, were created. For a couple years, the Bush Administration touted their success in encouraging more "creative mortgages" that allowed people to become homeowners. They also routinely pointed to the housing numbers to show that their economic policies were working to keep the U.S. economy out of a recession. Bush even personally took credit in speeches for the fact that there were more "creative" loan products that were allowing people who would otherwise have not been able to do so to get loans. The Bush Administration even pushed a "Zero-Downpayment Initiative" to try to allow people to get mortgages with no money down.
