.GOV feels there is just a bit more juice to squeeze out of the middle class. They are grinding the rind at this point.


https://nypost.com/2023/04/16/how-the-us-is-subsidizing-high-risk-homebuyers-at-the-cost-of-those-with-good-credit/amp/

Fighting the systemic racism of credit scores. Or good old fashion wealth redistribution. Pretty much the same thing.

CS78 said:

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Fighting the systemic racism of credit scores. Or good old fashion wealth redistribution. Pretty much the same thing.

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It's not wealthy people that this hurts. It directly hurts the middle class. We are constantly under attack financially.

Hopefully there are democrat voters on this board that will rethink their voting decisions.

But I doubt it.

Encouraging high risk borrowing seems like sound economic policy, and taking from responsible people who make good decisions is only fair.

GAC06 said:

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Encouraging high risk borrowing seems like sound economic policy, and taking from responsible people who make good decisions is only fair.

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I mean, what's the worst that can happen? It's not like we've ever tried to give easy home loans to people who couldn't afford them and then had to default at a scale that had never been seen.

oh, wait.

Without the government implied guarantee on ALL conventional loans our mortgage market would look a lot more like the rest of the world. That is to say a lot less fixed mortgages and virtually no 30 year fixed, with 20% down more or less as the min. So the implied gov subsidy is WHY these changes can even be made. So, if you have a Fannie/Freddie mortgage the terms are as good as they are it is because it was backed by the Gov.

And I am not sure why this is making the news now, as linked on this thread this was announced in Jan and has been baked into rates since at least March.

nothing wrong with revisiting complete and utter BS especially when the implementation is happening next month.

Jay@AgsReward.com said:

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And I am not sure why this is making the news now, as linked on this thread this was announced in Jan and has been baked into rates since at least March.

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Probably b/c many of us don't live and breathe mortgages everyday and it's not exactly a hot topic on most news/commentary programs.

This is more than just gov't-backed mortgages. It is literal wealth redistribution.

I can see how certain professions will benefit from this, but it's a big Eff You to lots of people for being responsible.

I am just surprised it was not news when it was announced is my point. At that point maybe a public outcry would have helped. For the record, this does NOT help my business in anyway and like I said in the previous thread linked here on this topic I am not a fan of the changes but because the timing does not make sense to me.

However, most people do not understand that the vast majority of middle class borrowers have been greatly subsidized by the government since world war 2. I think the better argument is maybe the government should not be subsidizing mortgages at all.

and there is a lot of confusion out there that some how someone with a 620 credit score is going to get a better rate then a 760 credit borrower and that could not further from the truth. The difference is a 760 borrower right now with 20% down would be looking at around 6% where a 620 would be 7.5%. The difference is just smaller now then it would have been before March.

Fair enough. To make sure I understand, though, the 760 borrowers are going to be paying extra each month in order to subsidize those with worse credit, correct?

NoahAg said:

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GAC06 said:

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Encouraging high risk borrowing seems like sound economic policy, and taking from responsible people who make good decisions is only fair.

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I mean, what's the worst that can happen? It's not like we've ever tried to give easy home loans to people who couldn't afford them and then had to default at a scale that had never been seen.

oh, wait.

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You should see what's coming for VA loans...all may get appraisal waivers. Many of those are 100% loans with no down payment.

I mean what's the worst that could happen lol?...actually it isn't funny.