Wednesday, April 3, 2013

Obama's Foreclosure Nation Gambit

Even lefty academics are on to this one.  Barack Obama is pushing banks to issue high-risk, subprime mortgage loans, under the rubric of supporting a home ownership culture.
This seems vaguely familiar. The Obama administration has started a full court push to get banks to make more home loans available to people with weaker credit. After the housing collapse leading to the tanking of economy, many experts pointed out in congressional hearings on the problem of loans to unqualified owners and that Congress spent years demanding more and more loans to low income families with bad credit
Obama will hold banks harmless for the insanity because they will be helping poor people own homes. Isn't that precious?  I so wish it were still April 1st.  
The loans being pushed by the Administration concern applicants who, even with the low interest rates, are not viewed by banks as good risks to actually pay off the loan. While more homes are likely to be built in helping the economy, more people will likely lose their credit and down payment money in foreclosures.
That's what is called a real estate bubble and a meltdown.  You get what you vote for.

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