States revolt against Biden's 'disaster' mortgage redistribution rule to subside risky loans

[LumRaiderFan]

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More wealth distribution from the democrats...they are always trying to penalize folks for being successful.

From the article:

State treasurers and other top finance officials from 27 states on Monday urged President Biden to end what they said was his "unconscionable" policy of forcing people with good credit scores to subsidize mortgage loans of higher-risk borrowers, and warned Biden’s plan would be a "disaster."

Biden’s plan was outlined just a few weeks ago by the Federal Housing Agency (FHFA) and is set to take effect today. The plan is aimed at helping lower-income borrowers afford their monthly mortgage payments – it would do so by forcing people with good credit scores to pay more each month for their mortgages, extra payments that would be credited to the loans of higher-risk borrowers.

The controversial policy has been attacked by both Republicans and Democrats, including President Obama’s former Federal Housing Administrator. On Monday, financial officers from 27 states weighed in and said it was clear the policy was a mistake even before it takes effect.

[5GallonBucket]

They want dependents not independents.

 

[LumRaiderFan]

12 minutes ago, 5GallonBucket said:

They want dependents not independents.

 

Yep, I'm not sure why the logic of don't buy a house until you can afford to pay for it isn't still used, that's what I had to do like millions of other folks.

 

[baddog]

I’m sick of paying someone else’s way through life. Why have I worked hard all of my life, trying to get “ahead” if all I’m going to do is end up equal?

[LumRaiderFan]

1 minute ago, baddog said:

I’m sick of paying someone else’s way through life. Why have I worked hard all of my life, trying to get “ahead” if all I’m going to do is end up equal?

Much easier to control the masses if they are dumbed down and mediocre across the board.

[Eagle11]

1 hour ago, baddog said:

I’m sick of paying someone else’s way through life. Why have I worked hard all of my life, trying to get “ahead” if all I’m going to do is end up equal?

Well hell, might as well pick up that mortgage while paying for their college

[Reagan]

If you have a FICO score of 740, you'll pay a 1% fee.  If you have a FICO score of 620 you get a 1.75% fee discount.

Now, as Gowdy said, this is NOT a law but a RULE made by some bureaucracy.  So, how do they have the right to make these rules that force people to pay more when this is a private transaction between private individuals and and private mortgage companies.   Can bureaucrats make rules that violate your Constitutional rights?  What's next?  Making people who make over $60,000 a year buy cars for those only making $20,000 a year?  Sounds ridiculous?  What's the difference when it comes to violating your Constitutional rights by fiat?  

First, I would refuse to pay the 1%.  When the mortgage company says you have to pay it or you do not get the loan, then I'd sue for discrimination.  Especially if I 100% qualify for the loan.  

I think there ought to be a law suit filed anyway.  This is the only way to stop this socialism creep and stop violating our Constitutional rights.

BTW, I saw JoeBama and 3 of his quotas all said the same thing: This is Equity!  Lord help us!

[baddog]

2 hours ago, Eagle11 said:

Well hell, might as well pick up that mortgage while paying for their college

That degree for knowing the Kardashian sisters won’t pay the bills?

[Reagan]

6 hours ago, LumRaiderFan said:

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More wealth distribution from the democrats...they are always trying to penalize folks for being successful.

From the article:

State treasurers and other top finance officials from 27 states on Monday urged President Biden to end what they said was his "unconscionable" policy of forcing people with good credit scores to subsidize mortgage loans of higher-risk borrowers, and warned Biden’s plan would be a "disaster."

Biden’s plan was outlined just a few weeks ago by the Federal Housing Agency (FHFA) and is set to take effect today. The plan is aimed at helping lower-income borrowers afford their monthly mortgage payments – it would do so by forcing people with good credit scores to pay more each month for their mortgages, extra payments that would be credited to the loans of higher-risk borrowers.

The controversial policy has been attacked by both Republicans and Democrats, including President Obama’s former Federal Housing Administrator. On Monday, financial officers from 27 states weighed in and said it was clear the policy was a mistake even before it takes effect.

@UT alum What are your thoughts on this?

[baddog]

I think this sucks. Does anyone truly believe that any extra monies paid by good creditors will really go into the pockets of the bad creditors, or assist with their mortgage? I don’t. The banks will still foreclose on the bad creditors and take in extra interest on the good ones. Biden….. what a dipstick. 

[BS Wildcats]

Typical commie/socialist way of thinking.

[WOSdrummer99]

9 hours ago, baddog said:

I think this sucks. Does anyone truly believe that any extra monies paid by good creditors will really go into the pockets of the bad creditors, or assist with their mortgage? I don’t. The banks will still foreclose on the bad creditors and take in extra interest on the good ones. Biden….. what a dipstick. 

Like the fee from Entergy to help assist low income customers. I've never had the lights cut off, but I wonder... Do they ever call and ask if you would like help paying your bill?

Banks don't either

[Eagle11]

Just wait.......on top of paying for their college and their mortgage I bet we will be on the hook for their cable, cell plan and car note before long. Ain't socialism great?

[UT alum]

On 5/1/2023 at 3:52 PM, Reagan said:

@UT alum What are your thoughts on this?

Not enough of info, but I don’t care for the editorial implication that bad credit indicates deadbeat behavior. Medical bills, unexpected job loss, disabling illness, many causes of bankruptcy besides poor money management.  It doesn’t say how much the fee is, if it applies to all good credit mortgages or only those over a certain amount.  The way the article states it, bad idea. Subsidizing sub-prime mortgages reeks of 2007.

[baddog]

It all comes down to greed. 

[LumRaiderFan]

2 hours ago, UT alum said:

Not enough of info, but I don’t care for the editorial implication that bad credit indicates deadbeat behavior. Medical bills, unexpected job loss, disabling illness, many causes of bankruptcy besides poor money management.  It doesn’t say how much the fee is, if it applies to all good credit mortgages or only those over a certain amount.  The way the article states it, bad idea. Subsidizing sub-prime mortgages reeks of 2007.

Exactly right

[UT alum]

22 hours ago, LumRaiderFan said:

Exactly right

See? I my be a liberal, but I try and use common sense when evaluating positions.