HERE WE GO AGAIN: WHITE HOUSE ASKS BANKS TO MAKE LOANS TO BORROWERS WITH ‘WEAKER CREDIT’
” The Obama administration is pushing banks to extend home loans to people with weaker credit, an initiative that the White House says will help fuel the recovery but critics say will lead to the type of conditions that caused the financial crash of 2008.
“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,” Zachary A. Goldfarb writes in the Washington Post.
The Obama White House explains that by taking advantage of taxpayer-backed programs that insure home loans from default, banks should be able to provide loans to a greater number of borrowers.
Cautious of the White House’s initiative, banks have secured assurances from housing officials that they won’t be held responsible for government approved borrowers who default on their loans.”
Illustration by Yogi Love
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- Obama Announces Plan to Mortgage the White House (smartasset.com)
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- Apparently Learning Nothing from the Fannie Mae-Freddie Mac Disaster, the Obama Administration Wants to Subsidize Banks to Make More Dodgy Loans (danieljmitchell.wordpress.com)
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