The New York Post’s Editorial Board says that President Barack Obama is planning to leave the country with quite a unique going away present by the time he leaves office: another housing crisis.
“The Obama administration is doing its best to give the nation another mortgage meltdown,” a recent editorial
alleged. “Team Obama has pushed mortgage lenders to offer home loans to folks with shaky credit, setting up conditions for another housing-market collapse,” the board wrote.
The Office of the Comptroller of the Currency recently warned that mortgage underwriting standards have slipped and now reflect “broad trends similar to those experienced from 2005 through 2007, before the most recent financial crisis,” the Post reported.
“When the economy and housing prices turn south again, a lot of these loans will go bad, just as they did last time,” the Post warned.
But one of the nation's prominent central bankers seemingly disagrees with the Post's view of the housing market.
New York Fed President William Dudley said
the housing market should remain on a “solid trajectory” for the rest of the year.
“Both new and existing home sales have flattened since the middle of last year,” Dudley said. “Indicators of real business investment spending point to continued softness. In contrast, manufacturing production—which had been a particular weak spot of the U.S. economy in 2015—rose in the first two months of this year.”
“I continue to anticipate that consumption and housing activity will expand at a moderate pace this year,” Dudley said. “Continued job and wage gains, combined with still-low energy prices, should sustain real disposable income growth and support consumer spending. The housing market should remain on a solid trajectory, supported by rising employment and low mortgage rates.”
(Newsmax wire services contributed to this report).
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