What Could Possibly Go Wrong ?

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

Related articles

• Fools Never Learn (globaleconomicanalysis.blogspot.com)
• White House pushes for home loans to people with weaker credit (stltoday.com)
• White House to Banks: Loan to Those With So-So Credit (newser.com)
• COLLAPSE” Obama Admin Pushes Banks To Make Home Loans To People With Weak Credit (secretsofthefed.com)
• Obama Announces Plan to Mortgage the White House (smartasset.com)
• Obama Administration wants to loosen home loan availability for people with weak credit (pubcit.typepad.com)
• 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)
• Obama Is Pushing Banks To Make More Home Loans To Borrowers With Poor Credit (financialsurvivalnetwork.com)

 

 

 

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More ” Oh Look What We Forgot To Mention “

 

FHA Red Ink May Be $32.8 Bil, Double Official Audit

 

 

 ” The Federal Housing Administration is in the red, according to an official audit released Friday, making a taxpayer bailout “all but certain.” But the reality may be even worse.

The FHA’s capital reserve was -1.44% of loan guarantees, or -$16.3 billion, according to a new independent audit. Last year reserves were still positive at 0.24% and $2.6 billion.

By law, the FHA — which insurers mortgages, mostly for low-income borrowers — is supposed to have a capital reserve of 2%.

The report prompted the chairman of a House Financial Services subpanel, Rep. Scott Garrett, R-N.J., to say that “a taxpayer bailout of the Federal Housing Administration is all but certain.”

And Ed Pinto, a resident fellow at the conservative American Enterprise Institute, says the truth is even worse. “

Illustration By Nate Beeler

Related articles

• For a Job Well Done (seeingthesword.com)
• FHA needs a bailout; Gee, who could have seen that coming? (aleksandreia.com)
• WSJ: FHA Close to Exhausting Reserves (calculatedriskblog.com)
• FHA Sets Stage for Taxpayer Subsidy With 2012 Deficit… (bloomberg.com)
• U.S. says to take steps to fill FHA capital hole, avoid bailout (reuters.com)
• FHA providing buying opportunities to those who defaulted on homes (denverpost.com)
• FHA capital reserves exhausted, audit says: WSJ (marketwatch.com)
• Now that the Election Is Over… (blogs.the-american-interest.com)
• Lousy week for America (bostonherald.com)