Is Obama about to recreate the mortgage crisis?

Obama’s house of cards
Bubble? What bubble!? By pushing bad loans in the name of ‘diversity,’ the president is creating the mortgage crisis all over again
By PAUL SPERRY
Last Updated: 12:53 PM, July 22, 2012
Posted: 10:04 PM, July 21, 2012

With studies showing home foreclosures hitting blacks and Latinos hardest, the Obama administration’s answer is baffling as well as destructive — to lend them more money, repeating the cycle of easy credit that led to the housing boom and bust.

A new AARP report finds that even elderly minorities are facing serious mortgage delinquencies. Fifty-and-over African-Americans, for example, are almost twice as likely to lose their home as older whites.
“This crisis is far from over,” AARP policy chief Debra Whitman said. “We need to think about more creative solutions.”

President Obama’s solutions, however, look a lot like the original problems that landed minorities in the financial mess they’re in today.

For starters, his new consumer credit watchdog agency has quietly adopted weaker, minority-friendly mortgage underwriting guidelines first published in a landmark 1994 policy statement released by the little-known Interagency Task Force on Fair Lending.

The 20-page “Policy Statement on Discrimination in Lending” — signed by the heads of 10 federal agencies, including then-Attorney General Janet Reno — warned banks that “the agencies will not tolerate lending discrimination in any form.”
It was a noble goal — undercut by the fact that the statement also set lower standards by which banks could qualify low-income minorities with spotty credit.

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Odumbo probably figures he can still blame Bush and his disciples will believe it.

 

If there IS going to be another mortgage crisis, it will be much simpler this time. The banks don't own these mortgages, the government does.

 

According to Ricter that's a good thing, right?