Article

2013-04-03 Government

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

Archived material is restricted to Rantburg regulars and members. If you need access email fred.pruitt=at=gmail.com with your nick to be added to the members list. There is no charge to join Rantburg as a member.

Posted by DarthVader 2013-04-03 09:15|| || Front Page|| [5 views ] Top

#1 Wait... didn't that lead to a housing bubble the first time we did it?

Posted by DarthVader 2013-04-03 09:15|| 2013-04-03 09:15|| Front Page Top

#2 It is very difficult for people of low and moderate incomes to refinance or buy homes.

I'm still having difficulty finding a lender for my Maserati 6CM purchase.

Posted by Besoeker 2013-04-03 09:25|| 2013-04-03 09:25|| Front Page Top

#3 There is polly something in the Obamacare regs that mandate this, also. and a 'fee' to pay for it.... I mean tax, thanks SCOTUS.

Posted by USN,Ret. 2013-04-03 09:41|| 2013-04-03 09:41|| Front Page Top

#4 Well, Obumble, figure out how to lower housing prices to any kind of affordability level and most of your Democrat buddy state governments go broke because they live off property taxes on the artificially raised property values.

I am beginning to think the housing bubble was a collosal scam to jack up housing prices to fund state governments. You know sort of like the occational mysterious jack up of gasoline prices for no apparent reason except maybe to generate more tax revenue.

There really is no good reason for the housing prices in California being 4 to 5 times higher than anywhere else in the US prior to the bubble popping. They are still way out of whack with the rest of the nation.

When you can buy a 5000 sf home on an acre of land in a gated community in an affluent suburb of Houston for 175,000 and the same home in Riveside CA costing 1.75 million there is a problem.

Tell the low and moderate income people to complain about the loss of higher paying manufacturing jobs overseas and the relatively low incomes of the service industry. Also tell them to get a college degree, you can't earn 100K a year with a crappy PC ridden worthless HS diploma.

Posted by Bill Clinton 2013-04-03 09:47|| 2013-04-03 09:47|| Front Page Top

#5 We survived the first dive. Now we're taking her down to crush depth AGAIN !

Posted by Besoeker 2013-04-03 09:48|| 2013-04-03 09:48|| Front Page Top

#6 The end state is not providing affordable housing opportunities to "weaker credit buyers". The end state is altering the demographics of suburban bedroom communities which historically vote republican. The party of urban America is expanding it's base. Mind your high school football team and Zillow.

Posted by Besoeker 2013-04-03 10:11|| 2013-04-03 10:11|| Front Page Top

#7 Wait, didn't someone define "insanity" as doing the same thing over and over, but expecting a different result?

Not sure that's the def'n in the Webster's though.

Posted by BA 2013-04-03 10:24|| 2013-04-03 10:24|| Front Page Top

#8 BA - you are assuming that the OBumble administration is looking for a different result.

That is not necessarily the case.

In fact all indications show that Obumbles and company are looking for the exact same results as before.

Posted by CrazyFool 2013-04-03 12:15|| 2013-04-03 12:15|| Front Page Top

#9 Yeah, if you were trying to ruin this country's economy you couldn't do much better than Obama.

Posted by Ebbang Uluque6305 2013-04-03 12:24|| 2013-04-03 12:24|| Front Page Top

#10 Kinda makes you wonder why.

Posted by Ebbang Uluque6305 2013-04-03 12:27|| 2013-04-03 12:27|| Front Page Top

#11 Equitable redistribution cannot begin until everyone has nothing.

Posted by Marilyn Pelosi1158 2013-04-03 12:32|| 2013-04-03 12:32|| Front Page Top

#12 ...except, of course, members of the Inner Party.

Posted by Procopius2k 2013-04-03 12:40|| 2013-04-03 12:40|| Front Page Top

#13 Can't see what the problem is. As a bien pensant, the main thing is to feel good like he did last time he went down this routeand the consequences are irrelevant.
This time he understands the score. Uncle Sugar(taxpayer) will cover everything via Chairman Benny and his backing for the TBTF banks.
Happy days are here again.

Posted by tipper 2013-04-03 12:50|| 2013-04-03 12:50|| Front Page Top

#14 Bill Clinton, everybody in the whole wide world wants to live in California. Not so much in Houston. But the sad fact is there is only so much property in California's coastal strip and even less in those parts below Santa Barbara which is where the really good weather is, you know, shorts and T-shirts in December...Santa Claus in flip-flops and Hawaiian shirts. You might do better if you wanna live out it the desert or up near the Oregon border. It's a supply and demand thing. Another sad fact is that California is not for everybody. Not everybody can afford it no matter how much our beloved Commander Zero tries to juggle the numbers.

For as long as I can remember, and that's a long time, developers in San Diego have claimed they want to provide more affordable housing. Their pet politicians echo the claim every time they want to build some vast new housing tract, regardless of what it will do to the people who already live here. So we have congested freeways, crowded schools, hospital emergency rooms full of illegal aliens and water rationing. They've been building as much as they can as fast as they can for decades and yet the cost of housing continues to skyrocket. It's all a lie.

The developers keep getting rich, the same old crooked politicians keep getting reelected and the quality of life continues to decline.

jimmuh carter, Bill Clinton (the democrat president, that is) and the Community Reinvestment Act accelerated the process, artificially stimulated the process, right up until the bubble burst in 2008. You remember Freddie Mac, Fannie Mae, Bawney (there's no bubble) Fwank and Chris Dodd, right? It struck me as being highly ironic that when the bust came and the prices started falling they all started squawking about how they needed to keep those prices up there. Wait a minute, I thought, you say you want affordable housing but now that it's becoming more affordable to want to get those prices rising again. YOU CAN'T HAVE IT BOTH WAYS! But even the bust only slowed them down a little bit and now it sounds like their gonna start juicing it again.

Posted by Ebbang Uluque6305 2013-04-03 13:01|| 2013-04-03 13:01|| Front Page Top

#15 I'm still having difficulty finding a lender for my Maserati 6CM purchase.
Besoeker, you're not trying hard enough.

Posted by tipper 2013-04-03 14:17|| 2013-04-03 14:17|| Front Page Top

#16 Ebbang Uluque630, don't forget the constant 'use less water' nonsense. Apparantly they have enough for thousands of new folks every year but we need to cut back and conserve, etc, etc.

Wasting water is not environmentally bad. It goes into streams and then rivers and then the ocean and recycles into the atmosphere yet we are made to feel bad for wasting it. Why? Because we can still pack more people into southern california if we all use less and take a deep breath.

Such a scam. Although the Bill Clinton above has a point worth considering I just don't think the poltiical class thinks things through very deeply.

Posted by rjschwarz 2013-04-03 14:36|| 2013-04-03 14:36|| Front Page Top

#17 They push that 'wasting water' BS here in Western Washington too. Do you have any idea how much water falls from the sky here? *LOTS*. Sometimes it seems like it's been raining for weeks.

But they keep on that same 'don't waste water' crap.

Posted by CrazyFool 2013-04-03 14:49|| 2013-04-03 14:49|| Front Page Top

#18 "don't think the poltiical class thinks things through very deeply"

I haven't noticed them thinking at all, rj (except for how they can line their pockets some more). :-(

Posted by Barbara 2013-04-03 15:16|| 2013-04-03 15:16|| Front Page Top

#19 "President Obamas economic advisers and outside experts say the nations much-celebrated housing rebound..."

WHAT "much-celebrated housing rebound"????

Lying, cheating, thieving bastards....

ARRRRRRRRRRRRRRRRRRGH!!!!!!!!!!!!!

Posted by Dave D. 2013-04-03 16:05|| 2013-04-03 16:05|| Front Page Top

#20 Subsidy makes things MORE expensive not cheaper.

Desperate attempt to blow into the punctured tyre of the economy and claim it's rolling fine.

Posted by Bright Pebbles 2013-04-03 16:08|| 2013-04-03 16:08|| Front Page Top

#21 O is retreading a bad tire.

Posted by Alaska Paul 2013-04-03 18:54|| 2013-04-03 18:54|| Front Page Top

#22 Another factor: the bad experience with the lousy loans the FHA has bought has caused it to raise its insurance requirements to 1.3% per year starting this month. That's $220 per month on a $200,000 loan, a 136% increase. And the borrower now also pays 1.75% upfront (adding $3,500 to the closing costs), instead of 0.01% ($20).

What is really bad: if a buyer puts down less than 10%, he will pay insurance for the life of the loan, instead of it dropping out when the loan balance goes below 80% of the original appraised value. You have to refinance to get rid of it. This kicks in in June.

FHA had to do this, their insurance pool was depleted.

The effect is to force everyone who can possibly qualify for a conventional mortgage to choose that, leaving the taxpayers to backstop the new crap. And make financing a home drastically less affordable for those with less than excellent credit.

None of this is getting much attention, but it should raise hell with the housing market, at least at the low end.

Of course, we need a new government initiative to fix this. i.e. hang the fix on the honest taxpayers and homeowners.

Posted by KBK 2013-04-03 22:36|| 2013-04-03 22:36|| Front Page Top

23:25 Water Modem
23:20 Water Modem
23:14 Bill Clinton
23:10 Steve White
23:09 Steve White
23:08 Shaving Thaviling3155
22:36 Pappy
22:36 KBK
22:29 Pappy
22:27 JosephMendiola
22:23 Water Modem
22:17 tu3031
22:01 newc
21:53 tipover
21:40 newc
21:01 JosephMendiola
20:57 JosephMendiola
20:52 JosephMendiola
20:37 Besoeker
20:27 SenatorMark4
20:24 Jack is Back!
19:59 junkiron
19:59 JosephMendiola
19:58 Thing From Snowy Mountain