May Day: It's all about equity
Starting today, May 1, a Biden decree will force mortgage calculations to penalize the hard working, honest citizens with a FICO credit score of 680 and above in order to accomodate and reduce costs for people with low credit scores. It is not only unfair but it puts bankers in the terrible position of extending loans to risky borrowers more likely to default on mortgages. That is the very thing that caused the 2008 Financial/Housing crisis. This penalty for those with good credit could amount to $600 per month.
It is intended to close the homeownership gap between black and white families. In other words it is what the radical left calls "equity" and after 2008 it is their second bite of the apple. Many of the hard working decent Americans don't even know it's happening. The social experiment launched by Bill Clinton and Andrew Cuomo actually hurt the very people it was intended to help. This time around Biden's radical handlers seem determined to harm everyone. Such is the cost of "equity" and "social justice."
Maybe it's time to get the federal government out of the housing market?
Don't like it?
Maybe it's time to vote against democrats?
Many are simply wrapped up in the day-to-day struggle to raise a family and don't even know this is happening.
yeah, it really sucks that middle class americans have to bear the costs of the wealthy white supremacist activities in our culture for the last 160+ years.
Well, if you have all that white guilt, why not give your possessions to those you consider oppressed.
Charity begins at home. Go for it.
oh, don't go all biblical on me now...
That has little to do with the Bible. It's about you setting the example. Not all of us have white guilt.
... you definitely can't. close, but no sigaro...
Those with white guilt must be the ones to provide the reparations.
If guilt and responsibility is something that gets magically handed down through the generations, than the Democratic Party should be responsible for reparations.
Agreed!
okay by me, but I really don't think republicans in the south can afford it...
Exactly, only the Dems in the South have money.
Prove it.
What I have seen is that those with good credit would pay a higher fee associated with the initiation of a mortgage. A one time fee with an average of 375 dollars.
So that's a penalty of over $14,000 over the course of a 30 year loan on people who pay their bills.
Fuck off. People with good credit shouldn't pay anything extra, period.
Especially to cover irresponsible assholes who will more than likely default on their loans anyways.
After the majority’s report was published, many people lamented that it was not possible to achieve a bipartisan agreement even on the facts. But the way the Commission was organized and run made this impossible. One glaring example will illustrate the problem. In March 2010, Edward Pinto, a resident fellow (and my colleague) at the American Enterprise Institute who had served as chief credit officer at Fannie Mae, sent the Commission a 70-page, fully sourced memorandum on the number of subprime and other high-risk mortgages in the financial system in 2008. Pinto’s research showed that he had found more than 25 million such mortgages (his later work showed that there were approximately 27 million). Since there are about 55 million mortgages in the U.S., Pinto’s research indicated that, as the financial crisis began, half of all U.S. mortgages were of inferior quality and liable to default when housing prices were no longer rising.
In August, Pinto supplemented his initial research with a paper documenting the efforts of the Department of Housing and Urban Development (HUD), over two decades and through two administrations, to increase home ownership by reducing mortgage-underwriting standards.
So you expected the banks who were forced to lower lending standards to quit banking all together or should they have operated at a loss for the sake of "equity?"
I believe the mortgage backed securities scheme predates the "lowering of lending standards".
Wall St investment banks were not happy with returns they were getting and cooked up a new way to get higher returns. There wasnt a lot of concern that some of the millions of mortgages they were bundling were shaky. That was someone else's problem.
The effort to get more minority home ownership was in the works for a long time. It was Clinton who got it going.
You highlighted the wrong part of the last paragraph. The banks were forced into granting loans to people they would normally have rejected, but found that bundling them together they figured that the people who would be able to make the payments would outnumber the ones who couldn't and still be able to make a profit, because that was always the trend.
"What I have seen is that those with good credit would pay a higher fee associated with the initiation of a mortgage. A one time fee with an average of 375 dollars."
The $600 figure has been mentioned in the popular media. Look it up.
Why punish people with good credit histories all? That would include minorities, not just White people, who you seem to despise.
Didn't the Democrat inspired mortgage debacle of 2008 teach you anything?
read comment 3
Greed on Wall St. caused the debacle of 2008.
Prove it.
There are dozens , if not hundreds, of articles about this on the internet.
There is a lot of bull shit on the internet.
You should know.
I leave it for you. What does the Daily Kos say?
It may have been, but I'm pretty sure it's not accurate.
This is an exceedingly fair point.
Just another consequence of gifting the economy to the financial sector. These fees are a boon for lenders because they can create more loans. This expands the credit market which won't benefit any borrowers.
There's a lot of talk about redistributing wealth. Well, any sort of loan or mortgage redistributes wealth from the borrower to the lender. Adding fees and surcharges to less risky borrowers only subsidizes transfer of wealth from the working population to the investor class. More borrowers allow investors to dig deeper into the pockets of people in the real economy. Collecting interest from more borrowers only redistributes wages to investor capital gains. A debt slave is still a slave.
Don't blame the poor for investor greed. Biden is subsidizing lending; no lenders will be harmed by Biden's move. Biden is playing with people's lives to expand the credit market and redistribute wages to investor capital gains. Biden has shown he will protect financial profit with his use of the public treasury to subsidize student debt; lenders won't be hurt by student debt forgiveness. The financial sector is little different than Ukraine; there's never enough.
There is good stuff too. You need to separate the good from the bad.
That post was in response to somebody who deleted her comment right after making it.
Amazing what goes on here.
Just another hidden tax increase on those making less than $400k. But it's hidden so I guess we can't accuse Biden of breaking another campaign promise.