Obama would target sub-prime lenders

WASHINGTON, Aug. 29 (UPI) -- U.S. Democratic presidential hopeful Sen. Barack Obama of Illinois said he would fine sub-prime mortgage lenders to bail out a myriad of foreclosures.

Writing in Wednesday's Financial Times, Obama cited figures from the Center for Responsive Politics in his criticism of lobbyists he said are responsible for the mortgage meltdown.

"While predatory lenders were driving low-income families into financial ruin, 10 of the country’s largest mortgage lenders were spending more than $185 million lobbying Washington to let them get away with it," he wrote.

Obama also wrote it was incumbent on the government to "stop the unlicensed, unregulated, fly-by-night mortgage brokers who are hoodwinking low-income borrowers into loans they can’t afford."

Democrat-dominated Senate and House committee leaders have called on the Bush administration to allow giant mortgage lenders Fannie Mae and Freddie Mac to step in by lifting caps on their mortgage portfolios but the White House has resisted, the newspaper said.