The President this week has asked banks to loosen restrictions on mortgage lending to allow low to middle income families with less than sterling credit to buy homes. He suggests this will further juice the economic recovery. The call comes as the U.S. is experiencing a housing rebound, but scratch the surface and critics say you realize that the turnaround is driven by the investor class, scooping up foreclosed properties for cash and using them as rental properties.
On ‘Real News’ Thursday the panel discussed if this kind of policy could set the stage for another housing collapse, and if so, would it be as bad as the first. Watch a clip below with guest Greg McBride, Senior Financial Analyst at BankRate.com: