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

[Prince.Skeletor]

Umm........
Does he remember the last time banks did this????

Remember when every liberal was hating on banks for doing this??????

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.

Obama administration pushes banks to make home loans to people with weaker credit - Washington Post



I mean.........
Really?

 

[Broke Wave]

Umm........
Does he remember the last time banks did this????

Remember when every liberal was hating on banks for doing this??????



Obama administration pushes banks to make home loans to people with weaker credit - Washington Post



I mean.........
Really?

When was the last time the government ever forced a bank to make a loan? Also Obama is not forcing the banks to make any loans, he's just trying to loosen the tight restrictions on loans right now... there is not a lot of liquidity in the credit markets so Obama is trying to loosen this. The banks are supposed to make loans and stimulate the economy but it seems that they are not doing this, so the framing of this article is incorrect and misleading IMO.

That being said, I still disagree with the premise of what Obama is doing, I'm just explaining why its not what you think it is, and what you think it is has never happened, contrary to conservative belief.

“If the only people who can get a loan have near-perfect credit and are putting down 25 percent, you’re leaving out of the market an entire population of creditworthy folks, which constrains demand and slows the recovery,” said Jim Parrott, who until January was the senior adviser on housing for the White House’s National Economic Council.

 

[Prince.Skeletor]

When did I say what you are infering that I said?

 

[No_bammer_weed]

When did I say what you are infering that I said?

because your op is misrepresenting the financial meltdown and crisis. The collapse of the housing and banking sectors was owed to a matrix of fraud...to say "Does he remember the last time banks did this????" is dishonest, and furthers the conservative lie that the collapse was caused by poor innocent banks being forced to loan to irresponsible blacks and mexicans by the govt. Take some time to actually read about the crisis. Matt Taibbi's blog at RS is a great place to start

 

[MeachTheMonster]

because your op is misrepresenting the financial meltdown and crisis. The collapse of the housing and banking sectors was owed to a matrix of fraud...to say "Does he remember the last time banks did this????" is dishonest, and furthers the conservative lie that the collapse was caused by poor innocent banks being forced to loan to irresponsible blacks and mexicans by the govt. Take some time to actually read about the crisis. Matt Taibbi's blog at RS is a great place to start

it's always them damn blacks and Mexicans.

 

[Dusty Bake Activate]

because your op is misrepresenting the financial meltdown and crisis. The collapse of the housing and banking sectors was owed to a matrix of fraud...to say "Does he remember the last time banks did this????" is dishonest, and furthers the conservative lie that the collapse was caused by poor innocent banks being forced to loan to irresponsible blacks and mexicans by the govt. Take some time to actually read about the crisis. Matt Taibbi's blog at RS is a great place to start

What are you talking about? Massive unregulated trading of mortgage-backed security derivatives, systemic fraud, and bank sheets being full if unleveraged debt had nothing to do with the financial collapse. It was all the government giving Jamal and Quintesha mortgages they didn't deserve.

 

[Domingo Halliburton]

What are you talking about? Massive unregulated trading of mortgage-backed security derivatives, systemic fraud, and bank sheets being full if unleveraged debt had nothing to do with the financial collapse. It was all the government giving Jamal and Quintesha mortgages they didn't deserve.

well when you can sell the loans off to fannie and freddie and let them guarantee it, why the fukk do i care how "creditworthy" you are?

 

[Dusty Bake Activate]

well when you can sell the loans off to fannie and freddie and let them guarantee it, why the fukk do i care how "creditworthy" you are?

Nobody's defending that. The point was the mortgage crisis could've been just a mortgage crisis instead if a global meltdown of the financial system if it wasn't for all the wallstreet fukkery.

 

[Domingo Halliburton]

Nobody's defending that. The point was the mortgage crisis could've been just a mortgage crisis instead if a global meltdown of the financial system if it wasn't for all the wallstreet fukkery.

don't get me wrong i agree with everything you said. I was just looking the other day at credit default swaps on residential MBS. at least these derivatives are on exchanges now and there's some transparency.

 

[mbewane]

Eh brehs can I ask a simple question?

Could someone break down to me why Americans rely on credit so much? I mean if you don't have the money or guaranteed job, why would you buy a house? Why not rent it?

I'm not trolling, there are probably big parts of US economy that I don't understand at all but it really sounds crazy to me that people could get so deep in debt, EVEN if the banks frauds. I fully know that it's the banks that were the primary responsible of the collapse, but still...or is it basically that people signed and banks fukked them up afterwards?

I know this comes late and might sound naive but it seems like sooner or later this whole credit thing comes up more often in the US than in France or Belgium for example. This friend of mine who moved back from the US told me his bank looked at him suspiciously because...he didn't have any debts

Again, just trying to understand better here

 

[Prince.Skeletor]

Let's get back on topic

The point is we should not do this again!!!!!!

I smell another bailout!

 

[No_bammer_weed]

well when you can sell the loans off to fannie and freddie and let them guarantee it, why the fukk do i care how "creditworthy" you are?

This isnt completely dishonest, because F&F deserves some culpability, but its an overplayed hand at best. When GSE's controlled a larger share of mortgage origination market, in the early 2000s, sub prime loans were at slightly enlarged but reasonable levels and a fraction of prime loans. At worst a slight depression would have been triggered in just the housing market specifically. By '06 private banks had cornered about 80% of the subprime market, and subprime loans were exploding and by far the dominant mortgages....thats not covering the fraudulent activity involved w/ the loans.

Notice the relationship between GSE's control of the market, and the swelling of subprime mortgages beginning in '04...when GSE's re-assumed control in 07, it was too late:

 

[Broke Wave]

don't get me wrong i agree with everything you said. I was just looking the other day at credit default swaps on residential MBS. at least these derivatives are on exchanges now and there's some transparency.

I wish I knew how to trade CDS derivatives... seems like that's where all the money us... top traders seem to have settled on that niche

 

[Domingo Halliburton]

I wish I knew how to trade CDS derivatives... seems like that's where all the money us... top traders seem to have settled on that niche

yeah, I'm pretty sure you have to be an institutional investor to even touch them.

 

[Mr. Somebody]

Talk to banks about lowering the costs of these homes. Having to have a 6 figure income 2 buy a home in los angeles is brutal.