So; Obama wants to give those that can’t afford it to begin with, with little to no credit Housing Loans now. . .when we are still dealing with the last mess!

Obama plan to open housing market to those with weaker credit sparks debate

WASHINGTON – The Obama administration is engaged in a broad push to make more home loans available to people with weaker credit.

It’s 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.

President Obama’s economic advisers and outside experts say the nation’s much-celebrated housing rebound is leaving too many people behind, including young people looking to buy their first homes and individuals with credit records weakened by the recession.

In response, administration officials say they are working to get banks to lend to a wider range of borrowers by taking advantage of taxpayer-backed programs – including those offered by the Federal Housing Administration – that insure home loans against default.

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.

Seeds of Disaster 

Officials are also encouraging lenders to use more subjective judgment in determining whether to offer a loan and are seeking to make it easier for people who owe more than their properties are worth to refinance at today’s low interest rates, among other steps.

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. more

Just remember Obama;  people that earn minumim wage or less can’t afford a $800.00 or higher a month mortgage payment, your Obama Care Me$$, then pay to live without everyone in that household earning that much.  Maybe you forgot other expenses such as  family, food, utilities, Gas etc.. This is a HUGE DISASTER on top of an un to underemployed nation and a debt that keeps growing by the day.   shera~

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