Is White House feeding another mortgage collapse?
DOJ forcing banks to approve loans
- Duration 4:22
- Date Jul 26, 2012
DOJ forcing banks to approve loans
Also in this playlist...
This transcript is automatically generated
Just a few months ago President Obama attacked mortgage lenders for practices that put people.
In homes they couldn't afford.
Hurt badly by the irresponsible actions of others.
My lenders who sold loans to people.
Who couldn't afford them -- buyers who knew they couldn't afford them.
By speculators who were looking to make a quick buck.
By banks that took risky mortgages packaged them up and -- them off.
But in an effort to push diversity in -- -- is the Obama administration resorting to those old policies -- not a slimmest.
Legal analyst Bob -- hi Bob.
Good morning Bob -- what's your evidence that the administration is still giving or trying to give mortgages to people who really are not eligible.
-- should be.
Yet here here's a -- people should be outraged on one hand look the walls are on the book that says it has to be fair lending.
That's been around for years you cannot discriminate against minorities and as a result what's happened in this that timing of this.
Is what should be offensive to minorities they should be offended by this and that.
They're now saying there's agencies in the government that oversee this.
That they're putting pressure on banks because -- discrimination.
From -- years ago.
And literally what they have done Allison is they're lowering the standards.
For a lending.
To minorities to actually give loans to minorities.
Who allegedly were discriminated against.
-- for people could normally afford the homes.
That is not only patronizing.
It goes against exactly what he said.
As to what lenders did previously.
It's not right it did that hit the caught you eat you either believe what you say.
-- you don't -- minorities why for votes this is all politically motivated.
Well Bob let me read to you what -- statement from the Department of Justice says.
Since they defend what they're doing the department's settlement sure do not require banks to make loans to borrowers who do not meet -- underwriting criteria the department's actions only seek to ensure they're qualified borrowers receive equal treatment.
Free from discrimination I mean wasn't this the very problem that got us into the housing crisis.
There's so many people who couldn't afford homes were actually given mortgages.
-- in fact some from predatory lenders so aren't they are now.
Of who can get a mortgage.
They're more strict than ever before they went back to the old days where people have to put 20% down there -- background should not background checks.
Tax returns credit reports things that should it happen that are not quite at that now there are going to happen not elicit their statement.
I understand what you're saying but the problem is.
That in fact they're going to start overseeing.
Credit bureaus they're going to regulate credit bureaus and say listen if in fact you are not properly credit reporting.
That therefore they're saying that's a form of discrimination.
Well wait a second.
They're also is a pool of people out there not minorities.
-- faced with the same problems you know that you know.
Well minorities should be offended in this part don't you at some point get tired of being caught a minority and as -- -- -- being in America.
People that own a home.
The home doesn't know what color you are they don't know what ration -- If there is going to be standards in America.
For -- homes don't put people position where maybe a year from now or a year and a half from now they're going to be -- -- fault and lose their home again.
Should there be discrimination in lending of course not.
But you don't go back on a policy that put this country -- position and other words are not doing them a favor.
And that is what is an addition to that -- so patronizing it's sickening to me.
The timing of it is only for votes Beckett has said this a year and a half ago they could have done this a year and a half ago.
Why are they doing it they're doing it now because the election it's politics at its best and that should be offensive.
Well Bob -- we could hear how fired up you are about this issue thanks so much for coming in talking about it.