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Thread: Obama administration pushes banks to make home loans to people with weaker credit

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    Dolphins9954's Avatar
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    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.
    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.


    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.
    http://www.washingtonpost.com/busine...755_story.html


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    Obama administration pushes banks to make home loans to people with weaker cred

    So he wants to repeat what got us into this mess?

    Ok.
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    Apparently he's tired of being compared to Carter. By the time he's done he wants Carter to be compared to him.
    “I’m somewhat disappointed that more African Americans don’t think for themselves and just go with whatever they’re supposed to say and think."


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    What an idiot. This is like the monkey who keeps sticking his finger in the electric socket.
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    Re: Obama administration pushes banks to make home loans to people with weaker credit

    The funny part is that Clinton was roundly applauded for doing exactly this. It definitely simulated the economy, artificially, but then collapsed about ten years later...well after Clinton had left office. The blame was put almost entirely on Bush and Clinton is still viewed as some demigod. In fact, I have been scorched on this very site for suggesting that the groundwork for the housing bubble was laid by Clinton, Schumer, Dodd, and my absolute favorite Barney Frank well before Bush ever took office. For the record, I am in no way absolving Bush from any of his idiotic crap but the foundation of the problem absolutely belongs to Clinton and the liberals.

    Obama is trying to take Clinton's road to liberal stardom with healthcare reform, assault weapons ban, and home ownership for the poor. All of them sound great on paper but are disasters or just useless in reality. You would think that people would have learned something in the past few decades but, alas, they have not.
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    Quote Originally Posted by Buddy View Post
    The funny part is that Clinton was roundly applauded for doing exactly this. It definitely simulated the economy, artificially, but then collapsed about ten years later...well after Clinton had left office. The blame was put almost entirely on Bush and Clinton is still viewed as some demigod. In fact, I have been scorched on this very site for suggesting that the groundwork for the housing bubble was laid by Clinton, Schumer, Dodd, and my absolute favorite Barney Frank well before Bush ever took office. For the record, I am in no way absolving Bush from any of his idiotic crap but the foundation of the problem absolutely belongs to Clinton and the liberals.

    Obama is trying to take Clinton's road to liberal stardom with healthcare reform, assault weapons ban, and home ownership for the poor. All of them sound great on paper but are disasters or just useless in reality. You would think that people would have learned something in the past few decades but, alas, they have not.
    I thought that was pretty much common knowledge
    Quote Originally Posted by nyjunc
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    jared81's Avatar
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    Quote Originally Posted by MadDog 88 View Post
    What an idiot. This is like the monkey who keeps sticking his finger in the electric socket.
    In before speesh calls you a racist.
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    jared81's Avatar
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    Getting a loan for a house is too easy now IMO. You only need 3.5% to get an FHA loan. For a $200,000 house, that's 7k you need. If you can't afford to come up with that much money, then home ownership isn't for you. These people continue to do the same crap that gets us in trouble.
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    Quote Originally Posted by jared81 View Post
    Getting a loan for a house is too easy now IMO. You only need 3.5% to get an FHA loan. For a $200,000 house, that's 7k you need. If you can't afford to come up with that much money, then home ownership isn't for you. These people continue to do the same crap that gets us in trouble.
    But that's the thing it is not easier to get a loan, it was much easier in the 90's to get a housing loan than it is now. The credit fiasco rest the bar on what constitutes a good credit score, used to be a guy with a 650 to 700 was considered a solid borrower but now you need co-signers at that score, you better have a 750 or above or forget about getting personal loans at a decent rate.

    Regardless of money down you are still overqualified for a loan amount based on income so if you want to fix the problem with defaulting mortgages adjust the loan qualifiers to determine what amount can be borrowed. The problem here is the same problem that has been here all along, the Banks and Creditors want to force you into more debit so they pick and choose what they look at for loan qualifiers, the Banks want your loans and the Creditors want your debt.

    I don't really give a **** either way because I run my household like the salary cap, I make sure I am under the cap at all time and within 7 more years I'll be debt free, completely at the age of 46. That number would have been much much sooner had I not gone through a divorce and done what I needed to do to stay afloat. People just need to learn that you really don't need half the **** you have, most of it is just junk anyway.
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    jared81's Avatar
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    Quote Originally Posted by NY8123 View Post
    But that's the thing it is not easier to get a loan, it was much easier in the 90's to get a housing loan than it is now. The credit fiasco rest the bar on what constitutes a good credit score, used to be a guy with a 650 to 700 was considered a solid borrower but now you need co-signers at that score, you better have a 750 or above or forget about getting personal loans at a decent rate.

    Regardless of money down you are still overqualified for a loan amount based on income so if you want to fix the problem with defaulting mortgages adjust the loan qualifiers to determine what amount can be borrowed. The problem here is the same problem that has been here all along, the Banks and Creditors want to force you into more debit so they pick and choose what they look at for loan qualifiers, the Banks want your loans and the Creditors want your debt.

    I don't really give a **** either way because I run my household like the salary cap, I make sure I am under the cap at all time and within 7 more years I'll be debt free, completely at the age of 46. That number would have been much much sooner had I not gone through a divorce and done what I needed to do to stay afloat. People just need to learn that you really don't need half the **** you have, most of it is just junk anyway.
    Not sure what what loans you are talking about. You need a 700 score to get a good rate for a conventional. For an FHA you can get a loan with a 660. Im looking at a rental property and i can get a conventional loan with 25% down. coupled with all time low rates, this is a great time to get money as long as you are somewhat stable. I am the same way about debt as you though, I'm 31 and am debt free besides my house, my friends make fun of the fact that I don't drive a "baller" car (most of my friends are in some type of sales and do pretty well, but have no money on hand). My 07 Camry works just fine, because its paid for.
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