Obama: Reckless Lender

On Monday, Oct. 24, President Obama announced that the White House would by-pass Congress and institute new rules to make it easier to refinance a mortgage.  If there is any doubt that the federal government is the source of reckless housing policies those doubts should be put to rest by the fact that the administration is pushing loose lending at a time when banks have become bastions of conservative credit. What is Obama doing?  Home owners who are underwater find that they can't refinance and take advantage of historic low mortgage rates.  Bankers know inadequate equity levels increase a homeowner's probability of default.  While Obama can't directly force banks to make risky loans, he has power over Fannie Mae and Freddie Mac. Campaigning in Nevada, one of the bubble-and-burst states, Obama said, "So I'm here to say to all of you -- and to say to the people of Nevada and the people of Las Vegas -- we can't wait for an increasingly dysfunctional Congress to do...(Read Full Post)