In what could be a repeat of the easy-lending cycle that led to the housing crisis, the Justice Department has asked several banks to relax their mortgage underwriting standards and approve loans for minorities with poor credit as part of a new crackdown on alleged discrimination, according to court documents reviewed by IBD.
What a great idea to assist folks into buying homes that they can not pay for and jump start the housing market at the same time. Brilliant!!!!!
But, but, seems I have seen that in practice somewhere before....
Say what you will, but at least the MOB was honest about their shakedowns.
Prosecutions have already generated more than $20 million in loan set-asides and other subsidies from banks that have settled out of court rather than battle the federal government and risk being branded racist. An additional 60 banks are under investigation, a DOJ spokeswoman says.
H/T Small dead animals
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