Home › Forums › Other › Obama administration pushes banks to make home loans to people with weaker credit › blake wrote:… President
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.
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.