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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.
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More of the same hypocrisy. The banks are the reason for the crisis…. yet here is the administration ever so gently asking the banks to ease up underwriting guidelines.
[quote=blake]…
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.
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Once again, those “housing officials” (puppets of the lobbyists for those in the real estate, mortgage, and related industries) will make sure that all the profits are privatized…while the taxpayers will be on the hook for all the losses.
So just to clarify, these people have the income necessary to pay the mortgage and associated fees each month, but not the credit score to qualify? Hopefully, loan officers will not be pushing interest-only loans to people again, even if they don’t currently earn enough money to pay the conventional principal and interest payment each month.
It is not easier to qualify with an interest only payment and are not available to those with bad credit.
Talk of a housing recovery is foolishness.
Programs like FHA do not make housing affordable.
They just allow people with crappy credit to buy houses at inflated prices and throw away more money on mortgage insurance.
They also punish responsible people with good credit who have saved up for a down payment.
This is a very sick and twisted concept manipulated by the govt to make
people slaves to a mortgage in many parts of the country that most people accept/expect as normal & the ‘American Dream’ as outlined by the govt.
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