5/1/23.....Biden to hike payments for good-credit homebuyers to subsidize high-risk mortgages

[pknopp]

Yeah, well. When we as a country start believing that for all, I'll listen.

 

[Markle]

Yeah, well. When we as a country start believing that for all, I'll listen.

So, when everyone, as a country obeys all laws, you'll start to obey laws too?

 

[pknopp]

So, when everyone, as a country obeys all laws, you'll start to obey laws too?

It's not about me. If you wish to address the position I posted, that would be great.

 

[Cellblock2429]

Biden to hike payments for good-credit homebuyers to subsidize high-risk mortgages

Homebuyers with good credit scores will soon encounter a costly surprise: a new federal rule forcing them to pay higher mortgage rates and fees to subsidize people with riskier credit ratings who are also in the market to buy houses.

The fee changes will go into effect May 1 as part of the Federal Housing Finance Agency’s push for affordable housing, and they will affect mortgages originating at private banks across the country. The federally backed home mortgage companies Fannie Mae and Freddie Mac will enact the loan-level price adjustments, or LLPAs.

Mortgage industry specialists say homebuyers with credit scores of 680 or higher will pay, for example, about $40 per month more on a home loan of $400,000. Homebuyers who make down payments of 15% to 20% will get socked with the largest fees.

The new fees will apply only to Americans buying houses or refinancing after May 1.

Lenders and real estate agents say the changes will frustrate homebuyers with high credit scores and homeowners seeking to refinance because the rule punishes them for their relatively strong financial positions.

“The changes do not make sense. Penalizing borrowers with larger down payments and credit scores will not go over well,” Ian Wright, a senior loan officer at Bay Equity Home Loans in the San Francisco Bay Area, told The Washington Times in an email message. “It overcomplicates things for consumers during a process that can already feel overwhelming with the amount of paperwork, jargon, etc. Confusing the borrower is never a good thing.”

He said the rule will “cause customer-service issues for lenders and individual loan officers when a consumer won’t understand why their interest rate and fees suddenly changed.”

“I am all for the first-time buyer having a chance to get into the market, but it’s clear these decisions aren’t being made by folks that understand the entire mortgage process,” Mr. Wright said.

The new fees “will create extreme confusion as we enter the traditional spring home purchase season,” said David Stevens, a former head of the Mortgage Bankers Association who served as commissioner of the Federal Housing Administration during the Obama administration.

“This confusing approach won’t work and more importantly couldn’t come at a worse time for an industry struggling to get back on its feet after these past 12 months,” Mr. Stevens wrote in a recent social media post. “To do this at the onset of the spring market is almost offensive to the market, consumers, and lenders.”
The housing market has been hit hard by a series of Federal Reserve interest rate hikes that have driven mortgage rates above 6%, roughly double the level from early 2022.

Oh look, it starts May 1.....Commie redistribution of wealth day.

Let's see....$40 per month for 30 years = $14,400 over the life of the mortgage.

/----/ Commies gonna Commie. Now responsible folks will pay for people who are stupid with money.

 

[pknopp]

/----/ Commies gonna Commie. Now responsible folks will pay for people who are stupid with money.

We have been doing that with Wall Street for years.

 

[1srelluc]

The housing market is slowing down some so new buyers need to insist on a 15K reduction in the home price to cover the cost of Tater's Folly.

 

[Rust_Cohle]

The housing market is slowing down some so new buyers need to insist on a 15K reduction in the home price to cover the cost of Tater's Folly.

Another article I read said those with good credit and using 15-20% down will be hit with 7% rates

 

[1srelluc]

View attachment 778284

Another article I read said those with good credit and using 15-20% down will be hit with 7% rates

I can't remember if the down payment was in addition to the credit score or not.

Still nobody seems to know where this all came from.....I guess the WH?

 

[Rust_Cohle]

I can't remember if the down payment was in addition to the credit score or not.

Still nobody seems to know where this all came from.....I guess the WH?

Yep this is 100% a Biden plan

 

[JusticeHammer]

First I will note that F&F should have been crushed long ago.

Second I will note that programs like this will only help the finances of all home owners. Take a large segment of the market out of the market and what happens? The prices of houses collapse.

Now, I also support that but I doubt many others do. For most a small bump in their payment will be preferred over the value of their home dropping.

This idea from the retard in chief is just one more example of how stupid him demscum are. Commie bastards.

 

[Concerned American]

We have been doing that with Wall Street for years.

I think Russia has some gaps in their population. Show your commitment and emigrate. I am sure they'd welcome you.

 

[Cellblock2429]

You and Lisa558 just need to mess up your credit a little bit before getting a new mortgage. Sounds a little backwards doesn't it?

/----/ People with great credit scores are generally smart with their money. Look for creative ways around this Commie dictate coming soon to the real estate business.

 

[Foxfyre]

First I will note that F&F should have been crushed long ago.

Second I will note that programs like this will only help the finances of all home owners. Take a large segment of the market out of the market and what happens? The prices of houses collapse.

Now, I also support that but I doubt many others do. For most a small bump in their payment will be preferred over the value of their home dropping.

Somebody else who cut all their basic economics classes?

Do you know what caused the housing collapse of 2008? It was primarily Fannie Mae, Freddie Mac and other lending institutions being encouraged by government, rewarded by government actually, to make riskier loans to people who made minimum or no down payments and had bad credit ratings.

These are the people absolutely most likely to default on their mortgages whenever there is any kind of economic downturn or slow down. And as a glut of those houses goes back on the market, the value of all homes declines and even responsible people with good credit ratings find themselves seriously underwater on their mortgages and, if they have to move, some of those will just abandon those homes or file bankruptcy rather than take a much larger loss.

And then the whole housing market collapses. And the country is thrown into serious recession.

There is a solid reason that benefits ALL that lending institutions loan money to those with sufficient collateral and/or who have a track record or otherwise are most likely to repay their debts.

 

[Foxfyre]

This is absolutely insane

How can any lib defend this?

We knew it was coming when they tried to forgive college loans and allow all college students to not take responsibility for their debts. Of course that would require the government to confiscate a lot more wealth from the responsible and ethical.

And now those of us with excellent credit scores will be punished in favor of those who aren't responsible which of course makes being responsible something the government is discouraging.

But then of late the Democrats have encouraged irresponsibility, lawlessness and neediness because those are the people most likely to believe the Democrat lies that they will make the people's lives better and vote Democrat.

If and when the Democrats accomplish leveling the playing field--a totally Marxist concept--then everyone will be much poorer except the Democrats with the authority to enforce it.

 

[pknopp]

Somebody else who cut all their basic economics classes?

Do you know what caused the housing collapse of 2008? It was primarily Fannie Mae, Freddie Mac and other lending institutions being encouraged by government, rewarded by government actually, to make riskier loans to people who made minimum or no down payments and had bad credit ratings.

These are the people absolutely most likely to default on their mortgages whenever there is any kind of economic downturn or slow down. And as a glut of those houses goes back on the market, the value of all homes declines and even responsible people with good credit ratings find themselves seriously underwater on their mortgages and, if they have to move, some of those will just abandon those homes or file bankruptcy rather than take the huge loss.

Odd, I said F&F needed crushed and then you say I was economically illiterate even though it seems you agree with me? No worries, that happens a lot.

 

[Foxfyre]

Odd, I said F&F needed crushed and then you say I was economically illiterate even though it seems you agree with me? No worries, that happens a lot.

Seems to me your post was siding with Biden's policy. Perhaps you can show where it doesn't?

 

[pknopp]

Seems to me your post was siding with Biden's policy. Perhaps you can show where it doesn't?

I noted that people are actually going to support this because it helps boost the housing market. They may bitch but they will bitch even more when the prices of houses collapse.

Now I support the Fed and government to stay out of all of it and things land wherever they land.

That's what we should have done years ago.

 

[Foxfyre]

I noted that people are actually going to support this because it helps boost the housing market. They may bitch but they will bitch even more when the prices of houses collapse.

Now I support the Fed and government to stay out of all of it and things land wherever they land.

That's what we should have done years ago.

Okay. Your post didn't read that way to me but I'll accept your explanation except that 'it will help the housing market.' I am pretty sure that it won't.

The housing market was so great during the Trump years that buyers were scrambling to outbid each other to buy properties.

Now Biden has so decimated the economy that buyers are super picky and demanding and pretty much no houses sell for their asking price, let alone for more than their asking price. Keep raising the interest rate for medium and higher prices homes and that only gets worse.

 

[pknopp]

Okay. Your post didn't read that way to me but I'll accept your explanation except that 'it will help the housing market.' I am pretty sure that it won't.

The housing market was so great during the Trump years that buyers were scrambling to outbid each other to buy properties.

Artificially low interest rates because of actions of the Fed we are paying for now.

Are you now saying you support Fed intervention into the markets?

Now Biden has so decimated the economy that buyers are super picky and demanding and pretty much no houses sell for their asking price, let alone for more than their asking price. Keep raising the interest rate for medium and higher prices homes and that only gets worse.

Inevitable. Rates had to rise. They should have years ago. Do you not understand this?

 

[Markle]

I noted that people are actually going to support this because it helps boost the housing market. They may bitch but they will bitch even more when the prices of houses collapse.

Now I support the Fed and government to stay out of all of it and things land wherever they land.

That's what we should have done years ago.

Please explain to us how all how punishing good behavior and rewarding bad behavior benefits anything.