Obama Pushing For Banks To Make MORE Risky Loans At Taxpayer Expense...AGAIN!

Confounded Interest ^ | 04/03/2013 | Anthony B. Sanders

Administration Encouraging Banks To Approve Riskier Mortgages
Here we go again. This is reminiscent of Clinton/Cisneros/Cuomo’s National Homeownership Strategy that help almost destroy the banking system and left millions of households in foreclosure: nhsdream2
According to the Washington Post (4/2, Goldfarb, 489K),the 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.” The Post adds that “administration officials say they are working to get banks to lend to a wider range of borrowers by taking advantage of taxpayer-backed programs…that insure home loans against default.” Additionally, 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.”
At least mortgage purchase applications should rise. And IF the banks fall for it, house prices should begin to rise.
But what about Richard Cordray and the Consumer Financial Protection Bureau and their 10 Commandment of Mortgage Lending? Are they asking the Department of Justice to ignore the new laws? OR is this getting taxpayer-backed programs (e.g., Fannie Mae, Freddie Mac and FHA) to open the floodgates?
Ed DeMarco, the acting director of FHFA (the regulator of Fannie Mae, Freddie Mac and the Federal Home Loan Banks) is the proverbial last man standing.
Fool me once, shame on you. Fool us twice, shame on us.
“I can’t believe they will fall for the same thing Clinton did … again!”