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: 2
- Ban fireworks? Get serious - 12
- Praising freedom: While curtailing it - 16
- Fergus Cullen: No politics buffer zone - some want issue unsettled - 7
- The perfect winner: Mrs. Craig gives when she receives - 0
- A sacred rite denied: Partial justice in Marriott murder - 0
- Casino tax breaks: Bad news for Gov. Hassan - 4
- A medal well earned: Ryan M. Pitts is a hero - 3
- Treat them better: Bad medicine for veterans, military - 14
- Editorial: USNH’s freeze a good start - 3
READER COMMENTS: 0
- Two of Gregory Smart's killers nearing release - 0
- Another walk-off win for Red Sox - 0
- Thibodeau claims fourth NHWGA Junior title - 0
- Stocks end lower on Portugal bank woes - 0
- Salem child porn arrest after tip leading to cloud storage of images - 0
- Manchester woman suffers injuries in dragging incident - 0
- Judge orders fired Manchester officer back to jail to finish sentence - 5
- Claremont police dispatcher charged with sex assault and incest, placed on leave - 0
- Speeding stop leads to drug and alcohol charges in Hollis - 0
132-mph street racers blow by trooper in Nashua, one of two arrested; motorcyclist arrested on I-93 doing 107 mph
Police say Manchester woman arrested for punching ex-boyfriend during custody exchange in Walmart parking lot
Mount Washington College to close 2 campuses
Bikers say under-30 generation isn't interested, and can't afford many of the top motorcycles
Ban fireworks? Get serious
GOP criticizes Shaheen over gas tax
Ignoring Lyme: What are state, towns doing?
Sentence fragment: Coco's cuckoo release