As I read the commentary about it, the idea is to increase home lending a controlled amount, not go back to the bush era practices of NINJA and liar loans.
If it was Romney saying this - and he would have, it's the same politics on both sides, and both sides want to see the housing market recover, and not just by investor purchasing which is driving the current small surge - all you guys would be all like YEAH SAVE THE HOUSING MARKET THATS GOOD POLICY.
You're all a pack of whiners - boohoo, obama the hahahahahaha is fucking us again.
Almost every commentator I have read the past three years said the banks tightened up too much and got too conservative. Some of what I have been reading says the banks are doing it on purpose to extort the government into not hauling the top execs into federal court.
The Washingtonpost's big business guy wrote this about it today:
From 2007 through 2012, new-home purchases fell 30 percent for people with credit scores above 780 (out of 800), according to Federal Reserve Governor Elizabeth Duke. But they declined 90 percent for people with scores between 680 and 620 ? historically a respectable range for a credit score.
?If the only people who can get a loan have near-perfect credit and are putting down 25 percent, you?re leaving out of the market an entire population of creditworthy folks, which constrains demand and slows the recovery,? said Jim Parrott, who until January was the senior adviser on housing for the White House?s National Economic Council.
One reason, according to policymakers, is that as young people move out of their parents? homes and start their own households, they will be forced to rent rather than buy, meaning less construction and housing activity. Given housing?s role in building up a family?s wealth, that could have long-lasting consequences.
?I think the ability of newly formed households, which are more likely to have lower incomes or weaker credit scores, to access the mortgage market will make a big difference in the shape of the recovery,? Duke said last month. ?Economic improvement will cause household formation to increase, but if credit is hard to get, these will be rental rather than owner-occupied households.?
Who's against it? The article quotes an American Enterprise wonk, the same folks who brought us the neocon policy that started the Iraq and Afghanistan invasions. Oh, and look - he was an admin at fannie mae before he joined American Enterprise.
Obama pledged in his State of the Union address to do more to make sure more Americans can enjoy the benefits of the housing recovery, but critics say encouraging banks to lend as broadly as the administration hopes will sow the seeds of another housing disaster and endanger taxpayer dollars.
?If that were to come to pass, that 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.
you guys need to read real news more, and watch less tv. yeah, like that'll happen.
I don't personally give much of a fuck, I own my house free and clear and don't care wether you dickwads can buy one. It's just pathetic to see a bunch of goobers jabber on, when it's all sour fucking grapes.