Biden Introduces Rule to PUNISH Home Buyers With Good Credit

[headshuck]

“If you have a FICO score of 620, you get a 1.75% discount on your mortgage fees. If you have a 740 score ... you have to pay 1% MORE.

 

And in real life, that means that over the course of a 30-year mortgage for a $400,000 home, that's a swing of more than $14,000."

[El Luchador]

This must be one of their common sense laws.

[mspart]

Yes, I heard about this the other day.    Why the heck do you want to have good credit for?  Will this incentivize bad loans like what ended up being a market crash in 2008?   Do we not learn from our mistakes?   Apparently not. 

mspart

[Wrestleknownothing]

This is a train wreck of a policy

[headshuck]

Bad debt? Don’t worry about it. Get out there and buy a $50k EV and save the planet. Don’t have the cash flow? Don’t worry about it, we’ll forgive your college debt.

[RYou]

I'm tired of his Executive Orders that usurp Congressional authority.  Biden has completely alienated the middle class.

[Wrestleknownothing]

This is a shadow tax increase. It is a way to raise taxes while claiming you did not raise taxes. And worse, like the attempts to wave student loan debt, it introduces moral hazard where it should not be. Subsidizing poor credit is always a bad idea. It creates a near term bump in activity at the expense of taking on a longer term risk that is not properly priced. Improperly pricing risk has a long history of ending very badly.

We saw what happens when the federal government attempts to influence lenders to make loans they otherwise would not make during the last mortgage lending crisis. Let's not repeat that mistake.

[mspart]

36 minutes ago, Wrestleknownothing said:

This is a shadow tax increase. It is a way to raise taxes while claiming you did not raise taxes. And worse, like the attempts to wave student loan debt, it introduces moral hazard where it should not be. Subsidizing poor credit is always a bad idea. It creates a near term bump in activity at the expense of taking on a longer term risk that is not properly priced. Improperly pricing risk has a long history of ending very badly.

We saw what happens when the federal government attempts to influence lenders to make loans they otherwise would not make during the last mortgage lending crisis. Let's not repeat that mistake.

Yes, this.   Did they not learn anything from the 2008 meltdown?  Oh but they'll do it better.   It just wasn't done appropriately.   It will be done perfectly this time.   Yeah right. 

WKN - you have it exactly right.

mspart

[Plasmodium]

Doing away with these programs altogether would probably drive housing costs down.  Most young people wouldn't be able to buy houses until the properties lost half their value or so, which would only take a few short years.

Alternatively, it could cause the end of individual home ownership as a norm and residential properties would become corporate investments.

[mspart]

Not sure what you are saying, "doing away with these programs", but when you lend to a person that does not have a history of being able to pay loans off, you are asking for trouble, like what culminated in 2008.  That was the lesson we were supposed to re-learn.   But they just can't leave that idea to die.

mspart