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: 8
- Fetal homicide: A compromise at last? - 4
- Freedom & discovery: A mathematician gets noticed - 0
- Preventing Newtown: Background checks won’t - 29
- Taunting taxpayers: Manchester teachers union won’t budge - 35
- Insurance choices: Shaheen, Shea-Porter, Kuster mislead - 19
- Looking for Abigail: Public can help find her - 3
- Riding lessons: DRED improves horse rules - 5
- Pray for safety: The state did not provide it - 15
- Big league gambling: AG makes right call on casinos - 8
READER COMMENTS: 0
- Manchester's O'Neill, Lebanon's Morrill form UNH's 'Granite Wall' - 0
- Stretch of I-293 North and South closed after propane tank crashes - 1
- $13m contract recommended for next phase of Nashua parkway - 0
- Couple charged in connection with Exeter burglaries - 0
- Proposed article sets rules for use of temporary signs - 0
- Newsreel: State unemployment stable; Gates Foundation CEO named; generic Viagra out soon - 0
- Leclerc takes second place in men's hockey - 0
- Trinity-Central game pushed to tonight - 0
- Derryfield's Hyde, Faulkner star in ski relays - 0
Shaheen, Ayotte split on House budget plan