View From Purcell, Oklahoma: Obama Admin Wants Money Money for High Credit Risks

Obama Admin Wants Money Money for High Credit Risks

This proves our government is run by complete idiots that never look at history and have no idea what happens in the real world.

The story: 

Obama administration pushes banks to make home loans to people with weaker credit

 

Oh. My. Gosh! Do these people have no idea what happened a few years ago and why (at least one of the main reasons) it happened? Heck, 0bama has spent the last 4+ years blaming Bush for the bad economy that he inheritied because of the bank failures. TARP was supposed to bail the banks out, instead it paid off political buddies and huge donors, but that is what I expected to happen.

(Yes, I know TARP was passed under Bush, Karl. It was stupid use of tax dollars and nothing more than political gamesmanship.) Of course the Dems pushed it and the MSM carried the water for them and Bush was afraid of the lambasting he would get in the MSM if he did nothing. But I digress.........

From the article:

The Obama administration is engaged in a broad push to make more home loans available to people with weaker credit, an effort that officials say will help power the economic recovery but that skeptics say could open the door to the risky lending that caused the housing crash in the first place.

and....

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. 

I would take the feds at the word....because the government always does what they say and they didn't go after any of the banks or mortgage companies that were forced by the federal government to make high risk loans.

and....

"...would open the floodgates to highly excessive risk and would send us right back on the same path we were just trying to recover from,” said Ed Pinto, a resident fellow at the American Enterprise Institute and former top executive at mortgage giant Fannie Mae.

and.... The bankers and mortgage companies certainly remember how the feds treated them after the collapse.....

But banks are largely rejecting the lower end of the scale, and the average credit score on FHA loans has stood at about 700. After years of intensifying investigations into wrongdoing in mortgage lending, banks are concerned that they will be held responsible if borrowers cannot pay. Under some circumstances, the FHA can retract its insurance or take other legal action to penalize banks when loans default.

“The financial risk of just one mistake has just become so high that lenders are playing it very, very safe, and many qualified borrowers are paying the price,” said David Stevens, Obama’s former FHA commissioner and now the chief executive of the Mortgage Bankers Association.

Who do these business people think they are by trying to reduce their risk and not run afoul of the feds. The lawsuits are insane by people who were 'tricked into purchasing more than they could afford'.

Licensed to SELL - Dedicated - Experienced - Honest - Than Maynard - Purcell, OK

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Than Maynard
REALTOR, CRB, Certified Short Sale agent, Certified Foreclosure Agent, Accredited REO Agent
Coldwell Banker Heart of Oklahoma Real Estate
1726 N Green Avenue, Purcell, OK 73080
CELL: (405) 990-8862
OFFICE: (405) 527-3012
www.cbheart.com

 

 

We never stop moving 3d

Comment balloon 12 commentsThan Maynard • April 03 2013 09:28AM

Comments

Than,

They may say they are helping people that are down.  My credit is not bad, but I am buying FHA and if they really wanted to help the middle class they would lower the MI cost.  They are huge.  I looked into a 5% conventional but I cannot do a buy and build with the conventional program.  

Posted by Gene Riemenschneider, Turning Houses into Homes (Home Point Real Estate) almost 6 years ago

They just increased the MI cost AND have now made it permanent. Where you used to be able to get it eliminated once you had 20% or more equity on today's new loans it never goes away!

Posted by Than Maynard, Broker - Licensed to List & Sell - 405-990-8862 (Coldwell Banker Heart of Oklahoma) almost 6 years ago

It is the Clinton administration all over again.  He wanted basically the same thing.

Posted by William Feela, Realtor, Whispering Pines Realty 651-674-5999 No. (WHISPERING PINES REALTY) almost 6 years ago

That new mortgage insurance clause is a real killer, and I bet the banks love it.  There's no end to their greed.

Posted by Georgie Hunter R(S) 58089, Maui Real Estate sales and lifestyle info (Hawai'i Life Real Estate Brokers) almost 6 years ago

Sounds like you'd better start sounding off direct to the government.

Posted by Michelle Carr-Crowe Just Call 408-252-8900 Top 1%!, Family Helping Families Buy & Sell Homes 40+ Years (Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty) almost 6 years ago

Than  You are preaching to the choir in my case.  After 37 years in this business the "everyone should own a home" syndrome is beyond comprehension

Posted by Karen Kruschka, - "My Experience Isn't Expensive - It's PRICELESS" (RE/MAX Executives) almost 6 years ago

Owning a home is right for some people, and renting is right for others.

Posted by Michelle Carr-Crowe Just Call 408-252-8900 Top 1%!, Family Helping Families Buy & Sell Homes 40+ Years (Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty) almost 6 years ago

Repeating the same behavior and expecting a different outcome is called ____! I'm not sure why anyone would want to be the President and try to fix the ails of our country; maybe we should start where we are.

Posted by Teral McDowell (Referral Patners LLC) almost 6 years ago

Than, seems like deja vu... we are not even out of the mess the last time this was practiced and we are going to try it again? 

Posted by Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES, Florida Waterfront and Country Club Living (Tropic Shores Realty - Ich spreche Deutsch!) almost 6 years ago

Personally, if this all goes through, I HOPE they really pay attention to RATIOS this time around.  As an ex underwriter, people with PERFECT credit were given the moon - the computer approved them so we had to.  Where does making a loan with a ratio of 99% of the GROSS income make any sense?  There are such things as eating, LOL.  

Posted by Juli Vosmik, Scottsdale/Cave Creek, AZ real estate 480-710-0739 (Dominion Fine Properties) almost 6 years ago

Never had one with high ratios approved. Guess that was something that got pushed in Oklahoma.

Posted by Than Maynard, Broker - Licensed to List & Sell - 405-990-8862 (Coldwell Banker Heart of Oklahoma) almost 6 years ago

Than:

Sadly, when it comes to washington the interest in keeping power out weighs the interest of the people everytime. 

Posted by Alan Kirkpatrick, Alan in Austin (Austin Texas Homes) almost 6 years ago

Participate