Analytics wrote:If you understood that part, you’d understand that the president fundamentally can’t wave a magic wand that will somehow make Wall Street willing and able to provide massive capital for the origination of subprime loans. That’s why this whole allegation that Obama somehow “orders same policy that sparked mortgage meltdown” is being reported by WND but isn’t being reported by The Wall Street Journal or any other news outlet read by people who actually understand finance: not only did Obama not “order same policy that sparked mortgage meltdown”, the very concept that he could doesn’t make sense.
Sure he can. It's called the FHA.
Deciding which borrowers get loans might seem like something that should be left up to the private market. But since the financial crisis in 2008, the government has shaped most of the housing market, insuring between 80 percent and 90 percent of all new loans, according to the industry publication Inside Mortgage Finance. It has done so primarily through the Federal Housing Administration, which is part of the executive branch, and taxpayer-backed mortgage giants Fannie Mae and Freddie Mac, run by an independent regulator.
The FHA historically has been dedicated to making homeownership affordable for people of moderate means. Under FHA terms, a borrower can get a home loan with a credit score as low as 500 or a down payment as small as 3.5 percent. If borrowers with FHA loans default on their payments, taxpayers are on the line — a guarantee that should provide confidence to banks to lend.
Washington Post
Hmmmm...bad credit sores...low down payments....what was the name for these types of loans again...?
