Home » Opinion » Editorials
Obama, bank president: Home loans by decree
Here is how The Washington Post summarized the Obama administration's new plan: "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.
"Officials are also encouraging lenders to use more subjective judgment in determining whether to offer a loan..."
The faith this President places in his ability to manipulate the economy just so is breathtaking. Surely there are many Americans with credit scores below 700 who are financially trustworthy. Why are banks not lending to them? Because after the crash the administration got tough with banks, holding them accountable for foreclosures, and demanding tougher lending standards. Now, banks scared off by the heavy hand of Obama and the then-Democratic Congress are told to relax, lend more, and they won't be held responsible for the consequences - which will be insured by the federal government.
Perhaps that will work out just fine. If not, though, whom do you think Obama and Congress are going to blame? Bankers know. They also know that no matter what course they choose, they are at Obama's mercy. Don't lend, and get attacked for being greedy and uncaring. Lend to riskier borrowers, and get blamed if anything goes wrong. This is what it is like to do business under this President. Is it any wonder that the economy continues to struggle?
READER COMMENTS: 0
- Dave D'Onofrio's Patriots Notebook: Another battle looms for Gronk - 0
- Dave D'Onofrio's Patriots Notebook: Incredible win tempered by loss of Gronkowski - 2
- Patriots stun Cleveland in another wild comeback - 1
- Dave D'Onofrio's Patriots Notebook: Pats need to avoid the drama - 0
- Brady to suspicious Texan: Pats 'just played better' - 1
- Dave D'Onofrio's Patriots Notebook: Not half bad - 0
- Eagles’ Kelly amps up support for Foles - 0
- Dave D'Onofrio's Patriots Notebook: Finding a way (again) - 0
- For Patriots, an imperfect victory over Houston - 0
READER COMMENTS: 0
- Manchester police recover shell casings in gunfire incident on Taylor Street - 1
- NHIAA Boys' Basketball Preview: Top dogs still have lots of bite - 0
- Allen Lessels' UNH Notebook: Wildcats have come a long way - 0
- Another weekend, another three games for Monarchs - 0
- Another View -- Mark S. MacKenzie: Raising minimum wage would lift NH families out of poverty - 3
- Pray for safety: The state did not provide it - 1
- Big league gambling: AG makes right call on casinos - 0
- Students add their special touch to Christmas - 0
- Chargers edge Manning, Broncos, 27-20 - 0
Hooksett man arrested on assault charges
Driver was trying to kill himself
NH reps eyeing budget deal
Budget gets House OK, heads to Senate
Decision to tap F&G habitat fund explained