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
- Colorful Tradition at UNH - 0
- Media Power Youth targets preventing youth violence - 0
- Better parent-child communication is Pembroke talk topic - 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 - 22
- Derry school district expects 2014-15 25-student enrollment increase - 0
- Derry teacher who brings science to life a national award finalist - 0
READER COMMENTS: 0
- Hudson man facing DWI charge after crash - 0
- Minimum wage rally at South Willow McDonald's - 5
- Frisbie hospital seeks hearing on network exclusion, information denial - 0
- Ayotte praised over attempt to change broadband funding - 0
- Pats prepare for Browns' bag of 'tricks' - 0
- Believe it: Celtics are in first - 0
- Vonn finishes training run, mulls entering Friday's race - 0
- Windham teachers' contract in mediation - 0
- College Roundup: Springfield shoots SNHU past FPU - 0
Dingman: Parole me for murder of parents
John DiStaso's Granite Status: Bob Smith ready to hire campaign manager for his 2014 US Senate run
John DiStaso's Granite Status: Scott Brown to be in Londonderry tonight, says 'nothing is really changed' on political plans