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
- Rivier University in Nashua aims to transform campus with $4 million plan - 0
- Move to Concord eyed for offices of university system - 5
- Nashua in running for education grant - 0
- Teacher cuts proposed in Londonderry - 21
- Derry school district expects 2014-15 25-student enrollment increase - 0
- Derry teacher who brings science to life a national award finalist - 0
- Londonderry sophomore has a passion for the past - 0
- Students take part in seminar on privacy at Nashua North - 0
- Londonderry kids learn while doing on Toga Tuesday - 0
READER COMMENTS: 2
- Police: Body found in Portsmouth creek not missing UNH student - 0
- Convicted drug dealer arrested in Nashua on more drug charges - 0
- Former Plaistow finance director charged with theft - 0
- Police: Laconia man threatened harm to toddler - 0
- Hooksett officer struck by motorist - 1
- UPDATE: Thornton woman dies after being struck by car in Campton - 0
- Sen. Ayotte pushes for bigger broadband bang for buck - 0
- Somersworth man dies in head-on crash with car driven by Dover City Councilor Michael Weeden - 1
- Hanover’s Grabill named top regional soccer coach - 0
Somersworth man dies in head-on crash with car driven by Dover City Councilor Michael Weeden
Ex-Tyco CEO granted parole
What Congress? Obama's 'easy way out'
Boy wounded by bullet was to be released
John DiStaso's Granite Status: Scott Brown cites NH as example of Obamacare 'trainwreck,' will keynote NHGOP event
Thomas Sowell: Victimhood and race