April 3, 2013
It’s a push that walks a tightrope, since it is expected to help boost the continuing economic recovery immediately but risks opening up the shaky lending that led to the housing crash.
Obama’s plan would provide for more lending to individuals such as young people buying their first homes, as well as people whose credit has been damaged by the recession.
More details from Goldfarb:
[A]dministration 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.
(Excerpt) Read more at businessinsider.com …