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There was a push from the administration for looser standards just a few months ago. I'm not sure if there is a connection, but as long as banks aren't bailed out they can loan money to a monkey for all I care.
There was a push from the administration for looser standards just a few months ago. I'm not sure if there is a connection, but as long as banks aren't bailed out they can loan money to a monkey for all I care.
Banks are bailed out, and nobody is forcing them to do anything.
Banks are bailed out, and nobody is forcing them to do anything.
I posted this a few weeks ago you must have missed it...........
"In what could be a repeat of the easy-lending cycle that led to the housing crisis, the Justice Department has asked several banks to relax their mortgage underwriting standards and approve loans for minorities with poor credit as part of a new crackdown on alleged discrimination, according to court documents reviewed by IBD.
Prosecutions have already generated more than $20 million in loan set-asides and other subsidies from banks that have settled out of court rather than battle the federal government and risk being branded racist. An additional 60 banks are under investigation, a DOJ spokeswoman says. No Job, No Problem
Settlements include setting aside prime-rate mortgages for low-income blacks and Hispanics with blemished credit and even counting "public assistance" as valid income in mortgage applications.
In several cases, the government has ordered bank defendants to post in all their branches and marketing materials a notice informing minority customers that they cannot be turned down for credit because they receive public aid, such as unemployment benefits, welfare payments or food stamps."
This is from today. Yeah government is doing nothing? LOL. Well they are ensuring that the taxpayers are on the hook which is the most important thing so the banks will keep lending to folks who can't pay it back.
"The White House also is working to make it easier for people with lower credit scores to refinance, given that today lenders are only willing to offer mortgages to people with the very best credit. That is leaving out a large group of borrowers who historically could afford to buy a home, even if they have had a negative mark or two on their credit record, housing analysts say.
But the housing finance proposal is likely to stir the most attention, since the administration has not previously come out strongly in favor of a 30-year mortgage and prolonged government guarantees.
The administration will make clear, officials said, that private capital — the money of investors, banks and other firms — will be the first to take losses if a borrower can’t pay. Under this model, the taxpayer-backed guarantee would only kick in during a massive housing crash."
Nobody is forcing them to do this, they are doing this on their own.
Government isn't putting a gun to their head to do this.
From the link ;
Quote:
Banks are being driven by competition from other banks to offer more favorable loan terms to businesses, he noted. This is due to some improvement in the economy which makes banks more willing to take risks. “When the economy is improving, the risk of banks not being repaid goes down,” Chessen said.
Oh good, I am planning on buying a house in 2-3 years, any little bit of relaxing the loan regulations will definitely help.
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