Obama admin pushing banks to give bad loans again

This post Obama admin pushing banks to give bad loans again originally appeared on Truth About Bills

Tell me if this sounds familiar. Banks are being told to provide loans to people with weak credit scores in order to “help” the housing market. If you are having flashbacks to the 2008 housing crisis where we gave Loans for Bad Credit individuals then you are a big winner. Even with the knowledge we have it seems Obama hasn’t learned from the past and the issues we are just now recovering from.

Obama Admin engaged pushing new loans to people with weak credit.

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.

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.

With Obama pledging to help more Americans enjoy the “housing recovery” in his State of the Union Address it would seem we now know the route he plans on taking. While to some this might seem like a great idea to “spur” growth others will remain skeptical. With the 2008 Housing and Loans crisis still visible with the slow job market it would seem we have learned nothing from our past mistakes.

This post Obama admin pushing banks to give bad loans again originally appeared on Truth About Bills