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: 16
- Claremont high school’s renovation causes upset, sparks inspection - 0
- Nashua school members' letter prompts an apology - 0
- UNH Law named a top 100 law school in magazine’s rankings - 0
- Loeb School spring classes offer career-change chance - 0
- 'Mathletes' chosen to represent NH in national competition - 1
- Pembroke Academy wants to help at-risk students - 0
- From Russia, with love of numbers at Nashua school - 0
- Great Bay Community College 'boot camp' trains students in precision manufacturing - 0
- Cyber defense competition coming to University of New Hampshire - 0
READER COMMENTS: 0
- $1 million cut from Nashua school budget - 0
- With passage of high school project, Salem district ready to roll - 0
- Manchester Crimewatch: City man misses court date while in jail - 0
- Bedford voters approves town budget - 0
- Auburn police contract, school renovation funding approved - 0
- 'Candidate's Night' is March 25 in Merrimack - 0
- Deadline to renew health plans for Granite Staters extended - 0
- Former youth baseball coach convicted a second time - 0
- Gilmanton library funding passes by 17 votes - 0
No dice: House kills casino gambling bill
John DiStaso's Granite Status: Scott Brown to announce exploratory committee for U.S. Senate run