(Wash. Post) Obama administration pushes banks to make home loans to people with weaker credit

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.

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Posted in * Economics, Politics, Consumer/consumer spending, Economy, Housing/Real Estate Market, Office of the President, Personal Finance, Politics in General, President Barack Obama, The Banking System/Sector, The U.S. Government

6 comments on “(Wash. Post) Obama administration pushes banks to make home loans to people with weaker credit

  1. Capt. Father Warren says:

    Oh gee, what could possibly go wrong with this?????

  2. Franz says:

    LOL. I have often thought that we, as a people, have a poor sense of history. The “GW Bush is the worst president ever” meme was one example. As if Buchanan did not exist.

    But, now we see that our amnesia is so profound, we can’t even remember what happened less than six years ago.

    Dismal.

  3. BrianInDioSpfd says:

    According to my banker friends, they were not allowed to turn down loans prior to the mortgage lending collapse because of policies and rules enacted during the Clinton administration. Do you suppose those bad loans had anything to do with the housing collapse and the recent recession?
    No. It was only the bad greedy bankers. LOL

  4. dwstroudmd+ says:

    Clinton Administration? I thought that was all about Monica Lewinsky and such! Oh, and Slick Willie played a clarinet or trombone or somesuch when not banging his own drum.

  5. Cennydd13 says:

    Umm, I seem to recall that in part, it was people taking out mortgages with weak credit ratings who got into financial trouble in the first place; helped, of course, by the same slick mortgage marketers who created the mess……or have I been wrong since the new home market crashed?

  6. Pageantmaster Ù† says:

    #3 [blockquote]Do you suppose those bad loans had anything to do with the housing collapse and the recent recession?[/blockquote]

    Yup, particularly since these bad loans were then collected together and then packaged as in-out-upside-down-trouser-bond-derivatives and sold on internationally to the rest of us – innovative financial instruments which managed to concentrate rather than spread risk and then apply an accelerating multiplier to it.