Here we go again: Obama administration pushes banks to make home loans to people with weaker credit

Banks are starving to ramp up home loans again. The only major business they're getting now is re-financing which hurts depositors. I'm working on 5 now. I'll save 21k per year just in interest. The longer this goes, the more our economy is hurt and banks won't loan new money. Under the new lending over-corrections, 70% of Americans don't qualify for 1st money, A bank loans.

Maybe, the National Community Reinvestment Coalition should make a few of these loans, John. Then, maybe you'll get why the professionals don't do them anymore.

This is the same failure under Clinton that Barney Frank and Chris Dodd pulled.

Well I know somebody cough cough myself who has weak credit. In college I got into trouble with credit cards etc etc....I had no choice but to declare bankruptcy. I was stupid young and regret it. Anyway I make a pretty nice income but never got another credit card. Thanks to the bankruptcy and just not building credit I don't think I could get a home loan. I don't need too because I inherited some property and built a home paying in cash. I know there are many in my situation who rent apartments paying what would be a mortgage. If they have weak credit but are buying a home WITHIN their budget their should not be an issue.

It is.

I couldn't believe my ears when I heard this on the news this morning.

WTH???

Just trying to blow that bubble up again and buy a few votes in the process. Same ole same ole.

Mornin', neighbor.

I dont understand this world any longer.

Failure?

All according to plan my friend.

You cant possibly still think the recession was an accident?

since there are all of these foreclosed homes, and all the new illegal aliens in the country, im sure you all can put two and two together.

To a right minded individual it is a failure.

So you think it's a good idea? Even after seeing what happened last time they did this?

People have bad credit for a reason.....they didn't pay bills.....

To be trusted again, they should build their credit back up first.

We all should've learned from 2008

Man, that would be some kind of disaster. We tried that crap once. There was a group called Banco Popular doing all kinds of ridiculous loans for illegals. That program crashed and burned way back in 2007.

5* and a pin suggested

The housing collapse in the U.S and subsequent economic tsunami wasn't caused by people not paying their mortgages all on its own....

It was caused by the banks fraudulently offering those weak mortgages as AAA credit while bundling them into derivatives, combined with the predatory lending spree that was happening in the sub-prime loan industry(which was heavily weighted with fly by nights and fraudsters who clearly took advantage of the disadvantaged).

There are still plenty of honest people out there, stop taking cheap shots at the poor to score political points. It is inhumane, and reeks of subservience to the Corporate greed which has fucked the world markets up to begin with.

It's not stupidity. They want to kill the dollar

No one is taking shots at the poor. I know people who have a higher yearly income than me with horrible credit.

Credit isn't about how much money you make, it's about how reliable you are at paying off you debts. If you have a history of not paying, no matter how much you make, I wouldn't give you a loan.

the uk govt has just announced that it will be putting this brilliant idea in to practice. govt funded this time, coz the banks - bizarrely - wont touch them with a barge pole

Well havent you been listening to Obammy, "there is no spending problem"!!!

Hell, we got money we ain't even printed yet!

Obama and Bernanke are trying to distract the public from dwelling on the poor economy by inflating housing sales numbers, thus showing Wall Street dorks that the economy is honky dory. And the public will eat it all up.

Right...and don't forget lizard lips Mozilla and what he did as founder of Countrywide.

That's insane. You'd have to be an idiot to sign a mortgage. People who sign them have no clue what is going on and what is coming down the pike.

Ahummm, the easiest time to secure a loan with no credit was during the Bush Jr. years.

Both parties are guilty but look at Frank and Dodds who played a massive role in that mess.

Does anyone have any thoughts as to who these people with weaker credit are?

I have my thoughts.. and they are not good.

Uhmm no, this was a Democrat thingy!

THey know EVERYTHING about the last debacle. They had a scissors action on - Obama lectured (and was photographed doing so) ACORN on how to pressure the banks legally. They claimed that areas with lots of poor people who happened to not qualify for loans were mostly black so it was discrimination.

the Current AG, then working for Janet Reno in the Chicago AG's office, threatened the banks that they could lose their licenses. And some other lackeys changed the rules to force banks to recognize welfare payments as "income" and also jammed in the 0-down-payment loans to force banks to loan within the so-called "red line districts".

That's why there are so many small banks with bad loans, which the fed is buying up these past few years since the collapse of their insurance.

They are repeating it now. Didn't Fannie mae stock just rise over 100% this year?

Nothing like a good con to keep the democrats in the money.

FOr awhile they'll play pass-the-house, then when it crashes again they'll blame the republicans.

The banks TELL the government what to do. You are seeing a bad cop, good cop gig. If the banks make bad loans the "govt"=you, bail them out. The entire system is a scam,including the political party musical chairs game.

This guarantees that there will be some form of the Republican party going forward, as they need some flat-footed idiots to blame for their schemes going sour during the 10-second-sound bites that now pass for news reports.

Yup, he was instumental in the first go round, so why not make it two for two, get more people loans they can't afford so that his Banker buddies can foreclose on them & the Fed can swoop in & buy them up. Sounds like a win-win.....if you're one of his Banker buddies, that is.