Has the government admitted that they were lending money to people they knew could not afford to repay it?

[Obama hood - Spread the Wealth]

By Daniel Wagner-Associated Press Thursday, January 10, 2013

In the wake of the national housing collapse that helped bring on the Great Recession, federal regulators for the first time are laying out rules aimed at ensuring that borrowers can afford to pay their mortgages.

The long-anticipated rules being unveiled Thursday by the Consumer Financial Protection Bureau impose a range of obligations and restrictions on lenders, including bans on the risky “interest-only” and “no documentation” loans that helped inflate the housing bubble.

Lenders will be required to verify and inspect borrowers’ financial records. They generally will be prohibited from saddling borrowers with loan payments totaling 43 percent of the person’s annual income.

So basically the government is admitting that rule put in place under Clinton did not check to see if someone taking a loan out could every repay it. Is this unbelievable?

Read more: http://www.washingtontimes.com/news/2013...z2Hbo3V3w7
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APO - What don't you understand about the words "for the first time". This means that these rules were not in place under the CRA.

[Lonesome Rhodes]

Gibberish.

[Apo Piso]

stop it. the BULK of subprime lending did not occur under the CRA. banks were lending to anyone because they were making money bundling and selling the mortgages as securities that were in turn insured by wall st.
oops

[Orange Smith]

Hilarious.

Of course, the politicians are still going to blame everyone else for their failures.

And the media will still let them get away with it.

[clint]

Yes, like the Oil Companies and Wall Street?

[dizneygeek]

The banks admitted long ago that they were giving loans to people that couldn't afford them. (especially to minorities)

[Tesla]

If your neighbor cannot pay for his food and is ill, what do you do? If you have money to spare, you help him recover, and pay for his medicine. Once he is better, you do not continue to pay for him to live, and you don't go out seeking more ill neighbors.
If you are involved in a ship wreck, you help the other survivors if you can. Once you are on shore, you don't then pay for them to live, get psychological help from whatever mental ills they now have, and you don't go out sailing the seas in search of more ship wrecks.
That's what is wrong with our government.