I guess the Gubmint already forgot about what caused the banking crisis of 2008.

[MarathonMike]

Do you have a FICO above 740? Uh Oh! The government is going to penalize you on your next mortgage application. Do you have a FICO score below 670 or lower? Congratulations! The government is going to reward you with a discount on your next mortgage application. All taxpayer funded of course. Yes my fellow Americans, our government really is that stupid. We are in big BIG trouble.

How the US is subsidizing high-risk homebuyers — at the cost of those with good credit

Experts say an “unprecedented” overhaul of mortgage fees would result in higher payments for most buyers.

nypost.com

 

[jotathought]

Yes .. I have a FICO score above 800 .. and all this communicates is .. not to pay your bills on time and it wont be relevant so irresponsible individuals (a large share of minorities) will have equal opportunities ... all in the name of equitable outcomes.

Seriously .. why would any sane individual just not follow the easy path and care less about being a low-risk to creditors?

 

[jotathought]

Creditors, who will now be required to accept riskier consumers, will either limit the available credit opportunities or remove themselves from the market.

It's like giving everyone an A in math, regardless if they took the tests or not. Democrats are so stupid.

 

[johngaltshrugged]

Creditors, who will now be required to accept riskier consumers, will either limit the available credit opportunities or remove themselves from the market.

It's like giving everyone an A in math, regardless if they took the tests or not. Democrats are so stupid.

You'd think this would happen but it won't.
They will still be happy to sell these mortgages knowing full well Fannie Mae/Freddie Mac have guaranteed them.
Plus, they'll bundle them up in risky MBS papers, sell them as A+ investments & we'll have 2008 all over again in a few years.

Except we'll probably be crashed well before these chickens come home to roost.
We're sitting on an everything all at once bubble already that will pop in the not too distant future

 

[Winston]

Do you have a FICO above 740? Uh Oh! The government is going to penalize you on your next mortgage application. Do you have a FICO score below 670 or lower? Congratulations! The government is going to reward you with a discount on your next mortgage application. All taxpayer funded of course. Yes my fellow Americans, our government really is that stupid. We are in big BIG trouble.

How the US is subsidizing high-risk homebuyers — at the cost of those with good credit

Experts say an “unprecedented” overhaul of mortgage fees would result in higher payments for most buyers.

nypost.com

Reading comprehension is not your strong suit is it? And the New York Post no less. First off, where did you get "government funded"?

Under the revised LLPA pricing structure, a home buyer with a 740 FICO credit score and a 15% to 20% down payment will face a 1% surcharge – an increase of 0.750% compared to the old fee of just 0.250%.
That is an upfront fee. On a $400,000 mortgage it is an increase to $3,000 from $1,000.

When absorbed into a long-term mortgage rate,
Who the hell is going to do that? Flippin New York Post. You mean to tell me someone is going to come up with eighty grand for a downpayment but then roll this three grand surcharge into the mortgage and pay interest on it for 30 years? Comically stupid.

a buyer with a 620 FICO credit score with a down payment of 5% or less gets a 1.75% fee discount – a decrease from the old fee rate of 3.50% for that bracket.
It is still a higher surcharge than someone with good credit. And hell, we haven't even factored in mortgage insurance, which would be required with that small downpayment and not required for the good credit, 20% downpayment. And in this case, well that fee probably will be wrapped up in the mortgage.

The fee structure changes are the latest of several moves by the FHFA aimed at boosting affordability for what the agency calls “mission borrowers” – defined as first-time buyers, low-income borrowers and applicants from underserved communities.
Let's look at one of the strategic goals of the FHFA.

Foster housing finance markets that promote equitable access to affordable and sustainable housing.

About FHFA | Federal Housing Finance Agency

www.fhfa.gov

Now, how can you call it "equitable" when one borrower pays one thousand dollars in fees while another borrower, already paying a higher interest rate, pays $14,000 in fees for the same borrowed amount?

 

[toobfreak]

Yes my fellow Americans, our government really is that stupid.

If by government you mean democrats, I agree. But then, democrats caused the banking collapse and SNL crisis of 2008 as well.

 

[Winston]

Creditors, who will now be required to accept riskier consumers, will either limit the available credit opportunities or remove themselves from the market.

It's like giving everyone an A in math, regardless if they took the tests or not. Democrats are so stupid.

Wow, you read that in the linked article? Could you quote the part that said creditors will be required to accept risker borrowers,

 

[dudmuck]

Do you have a FICO above 740? Uh Oh! The government is going to penalize you on your next mortgage application. Do you have a FICO score below 670 or lower? Congratulations! The government is going to reward you with a discount on your next mortgage application. All taxpayer funded of course. Yes my fellow Americans, our government really is that stupid. We are in big BIG trouble.

How the US is subsidizing high-risk homebuyers — at the cost of those with good credit

Experts say an “unprecedented” overhaul of mortgage fees would result in higher payments for most buyers.

nypost.com

Hedge funds, banks, and insurance companies caused the subprime mortgage crisis. Hedge funds and banks created mortgage-backed securities. The insurance companies covered them with credit default swaps. Demand for mortgages led to an asset bubble in housing.
When the Federal Reserve raised the federal funds rate, it sent adjustable mortgage interest rates skyrocketing. As a result, home prices plummeted, and borrowers defaulted. Derivatives spread the risk into every corner of the globe. That caused the 2007 banking crisis, the 2008 financial crisis, and the Great Recession. It created the worst recession since the Great Depression.

 

[jotathought]

You'd think this would happen but it won't.
They will still be happy to sell these mortgages knowing full well Fannie Mae/Freddie Mac have guaranteed them.
Plus, they'll bundle them up in risky MBS papers, sell them as A+ investments & we'll have 2008 all over again in a few years.

Except we'll probably be crashed well before these chickens come home to roost.
We're sitting on an everything all at once bubble already that will pop in the not too distant future

They will be happy ... if someone is assuming the risk. Would you lend a zillion dollars to someone who has a proven history of defaulting on their loans and borrowing? or bankruptcy?

 

[jotathought]

Wow, you read that in the linked article? Could you quote the part that said creditors will be required to accept risker borrowers,

Risk will be passed to low-risk individuals who will pay higher fees and interest rates to cover the riskier borrowers .. Are you not intelligent to understand that when it says, "A little-noticed revamp of federal rules on mortgage fees will offer discounted rates for home buyers with riskier credit backgrounds — and force higher-credit homebuyers to foot the bill, The Post has learned.

Fannie Mae and Freddie Mac will enact changes to fees known as loan-level price adjustments (LLPAs) on May 1 that will affect mortgages originating at private banks nationwide, from Wells Fargo to JPMorgan Chase, effectively tweaking interest rates paid by the vast majority of homebuyers."

Are you going to be one of those losers with shitty credit that tries to get a house now?

 

[johngaltshrugged]

They will be happy ... if someone is assuming the risk. Would you lend a zillion dollars to someone who has a proven history of defaulting on their loans and borrowing? or bankruptcy?

Well, it's a giant game of "who's the biggest idiot" as far as who actually ends up owning this debt.
The banks generally sell them off fairly quickly with Fannie/Freddie backing where they get bundled as MBS investments.
These MBS securities are bought by investment funds, pensions, etc...
It's a Ponzi scheme but that's par for the course in modern economics.

If 2008 showed us anything it's that the banks will take all kinds of risks & now they know the govt will bail them out with our taxes.

 

[Flash]

Do you have a FICO above 740? Uh Oh! The government is going to penalize you on your next mortgage application. Do you have a FICO score below 670 or lower? Congratulations! The government is going to reward you with a discount on your next mortgage application. All taxpayer funded of course. Yes my fellow Americans, our government really is that stupid. We are in big BIG trouble.

How the US is subsidizing high-risk homebuyers — at the cost of those with good credit

Experts say an “unprecedented” overhaul of mortgage fees would result in higher payments for most buyers.

nypost.com

That Community Reinvestment Act really fucked this country.

"Hey, let the government put pressure on lenders to give credit to people that have no means or inclination to pay the money back, what could possibly go wrong?"

Looks like the Potatohead Administration is hell bent on making the same mistake.

 

[jotathought]

Well, it's a giant game of "who's the biggest idiot" as far as who actually ends up owning this debt.
The banks generally sell them off fairly quickly with Fannie/Freddie backing where they get bundled as MBS investments.
These MBS securities are bought by investment funds, pensions, etc...
It's a Ponzi scheme but that's par for the course in modern economics.

If 2008 showed us anything it's that the banks will take all kinds of risks & now they know the govt will bail them out with our taxes.

Banks and financial institutions will be hesitant to take on more risk. the will handle it just like any other sane business and pass it on to their consumers -- in this case, it will be customers in the low-risk category who pay their creditors on time and / or manage their debt maturely.

For me .. when the bank charges me more .. I'll just pass it on to the renters currently living in my rental properties, so it has the opposite impact Biden seeks. It doesn't cost me anything.

 

[johngaltshrugged]

Banks and financial institutions will be hesitant to take on more risk. the will handle it just like any other sane business and pass it on to their consumers -- in this case, it will be customers in the low-risk category who pay their creditors on time and / or manage their debt maturely.

For me .. when the bank charges me more .. I'll just pass it on to the renters currently living in my rental properties, so it has the opposite impact Biden seeks. It doesn't cost me anything.

Everything Bide & Dems do has the exact opposite impact they CLAIM they are seeking.
What they say they are doing is rarely what they are actually trying to accomplish.

 

[Winston]

Risk will be passed to low-risk individuals who will pay higher fees and interest rates to cover the riskier borrowers .. Are you not intelligent to understand that when it says, "A little-noticed revamp of federal rules on mortgage fees will offer discounted rates for home buyers with riskier credit backgrounds — and force higher-credit homebuyers to foot the bill, The Post has learned.

Fannie Mae and Freddie Mac will enact changes to fees known as loan-level price adjustments (LLPAs) on May 1 that will affect mortgages originating at private banks nationwide, from Wells Fargo to JPMorgan Chase, effectively tweaking interest rates paid by the vast majority of homebuyers."

Are you going to be one of those losers with shitty credit that tries to get a house now?

First, my house was paid off years ago. But second, it was the flippin New York Post, sorry ass yellow journalistic rag. They clearly explained what is happening, their description that you quoted is horseshit. Those with good credit and a significant down payment will see their "surcharge" go from 25 basis points to 75 basis points. Meanwhile, those with "fair" credit, not poor, will see their surcharge drop from 350 basis points to 175.

This is a SURCHARGE, it is not part of the loan, it has no bearing on the interest rate. The good credit risk will still pay a lower rate than the high credit risk. And a significant downpayment will avoid the cost of mortgage interest. In the case of a someone with fair credit, that is an additional 175 basis points up front and 85 basis points during the course of the loan, at least until it is significantly above water.

I mean damn, think about it. Currently, that fair credit risk with a low down payment, they are paying 525 basis points in FEES alone. On a $400,000 mortgage that is $21,000, plus an ongoing yearly expense of $3,400. The good credit risk, they pay a flat one thousand damn dollars. I mean I am all about rewarding those with good credit, what I ain't too keen on is kicking someone in the teeth when they are on the floor.

This change drops that $21,000 to $14,000, still a damn kick in the teeth. Actually, it pays for the upfront mortgage insurance surcharge. And it only increases the cost for the good credit borrower by two grand. Cry me a damn river, dropping eighty grand on a downpayment and you guys are crying like stuck pigs over 2.5% of that down payment. You are just looking for something to bitch about.

 

[Winston]

Banks and financial institutions will be hesitant to take on more risk. the will handle it just like any other sane business and pass it on to their consumers -- in this case, it will be customers in the low-risk category who pay their creditors on time and / or manage their debt maturely.

For me .. when the bank charges me more .. I'll just pass it on to the renters currently living in my rental properties, so it has the opposite impact Biden seeks. It doesn't cost me anything.

You looking to borrow money to purchase new rental properties? Are you a slum lord? What do you pay for a repo doublewide? And you take out a mortgage on it? Unless you are actively seeking new financing this proposal ain't going to cost you jackshit. And if you are, then for that twenty grand you are throwing out for that double wide it is going to cost you all of one hundred bucks. What you going to increase the rent? Probably one hundred bucks a month. Kick them damn teeth.

 

[Winston]

Everything Bide & Dems do has the exact opposite king.
What they say they are doing is rarely what they are actually trying to accomplish.

Look, your username tells me all I need to know. Atlas Shrugged is some piss poor writing, a screed by a hypocritical little bitch. I mean I tried to read it, but being forced to read it, like many of today's current business school students, is cruel and unusual punishment.

You Republicans trip me out. Guns, guns, oh you love guns. Second amendment, blah, blah, blah. But, as indicated in this thread, you got no problem kicking those that are unfortunate in the teeth. I am here to tell you something, there is one number that defines, I mean actually DEFINES, a democracy, or a republic, or whatever you want to call this place. It is the Lorentz's curve. For years, the Lorentz curve has steepened, the slope is getting higher, and Republican policies are the biggest contributor to it.

And I am here to tell you, you flippin punk ass Republicans ain't never going to use those guns to overthrow the government. You are all hat and no cattle. But, you keep kicking those on the floor in the teeth, you keep implementing policies that make the rich richer, and the poor poorer, you keep increasing the slope of the Lorentz's curve, things are going to break. You best have your safe room in your house squared away. You best have your food stored, your barriers in place, because the day is going to come when the poor and downtrodden are sick and tired of getting kicked in the teeth, and they are going to get their vengeance.

 

[jotathought]

First, my house was paid off years ago. But second, it was the flippin New York Post, sorry ass yellow journalistic rag. They clearly explained what is happening, their description that you quoted is horseshit. Those with good credit and a significant down payment will see their "surcharge" go from 25 basis points to 75 basis points. Meanwhile, those with "fair" credit, not poor, will see their surcharge drop from 350 basis points to 175.

This is a SURCHARGE, it is not part of the loan, it has no bearing on the interest rate. The good credit risk will still pay a lower rate than the high credit risk. And a significant downpayment will avoid the cost of mortgage interest. In the case of a someone with fair credit, that is an additional 175 basis points up front and 85 basis points during the course of the loan, at least until it is significantly above water.

I mean damn, think about it. Currently, that fair credit risk with a low down payment, they are paying 525 basis points in FEES alone. On a $400,000 mortgage that is $21,000, plus an ongoing yearly expense of $3,400. The good credit risk, they pay a flat one thousand damn dollars. I mean I am all about rewarding those with good credit, what I ain't too keen on is kicking someone in the teeth when they are on the floor.

This change drops that $21,000 to $14,000, still a damn kick in the teeth. Actually, it pays for the upfront mortgage insurance surcharge. And it only increases the cost for the good credit borrower by two grand. Cry me a damn river, dropping eighty grand on a downpayment and you guys are crying like stuck pigs over 2.5% of that down payment. You are just looking for something to bitch about.

I see .. so the New York Post is wrong because Winston from USMB said so... got it.

 

[jotathought]

You looking to borrow money to purchase new rental properties? Are you a slum lord? What do you pay for a repo doublewide? And you take out a mortgage on it? Unless you are actively seeking new financing this proposal ain't going to cost you jackshit. And if you are, then for that twenty grand you are throwing out for that double wide it is going to cost you all of one hundred bucks. What you going to increase the rent? Probably one hundred bucks a month. Kick them damn teeth.

Although I don't do it .. you're suggesting that a "slum lord" targets low income individuals like blacks and losers with low credit -- especially those double wide trailers. You do support those type of borrowers .. right? or are they just degenerates that seek rent in double-wides and slums?

 

[MarathonMike]

That Community Reinvestment Act really fucked this country.

"Hey, let the government put pressure on lenders to give credit to people that have no means or inclination to pay the money back, what could possibly go wrong?"

Looks like the Potatohead Administration is hell bent on making the same mistake.

It's also a continuation of Obama's hatred of the successful. We all remember the speech where he mocked hard working successful Americans :YOU DIDN'T BUILD THAT!!! YOU HAD HELP!!! And we all know that he meant Big Gubmint when he said HELP.