The Obama administration is trying to persuade banks to make home loans available to a wider range of applicants, not just those with strong credit, by offering federal programs that protect lenders if borrowers default. Too many Americans are being left out of the housing market's recovery, Obama's economic advisers and experts outside the government say. Housing officials want the Justice Department to assure banks that legal action won't be taken against them if they lend to people with riskier credit who later default.

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