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Debates Forum

  1. SubscriberSuzianne
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    21 Jan '17 10:082 edits
    Congrats, all you middle-class Trump supporters!

    The Fourth Reich has just kicked us right in the groin, and on Day One!

    Trump just cancelled a mortgage fee rate cut scheduled to go into effect on Jan. 27. This fee cut would have saved homeowners with a mortgage through FHA about $500 a year.

    "Analysts heralded the fee cut, a policy championed by Democrats, as a significant savings—around $500 per year on a typical loan. It would affect millions of homeowners whose loans are insured through the FHA (Federal Housing Administration). It also would have helped prospective home buyers with lower credit scores borrow by bringing the federal version of mortgage insurance down to a more competitive price with private offerings."

    So yay! He's not going to let the middle-class be ignored any more!

    But he's certainly not going to help us out any, either.

    So yeah, America First! Except, you know, the middle-class.

    Yeah, the middle-finger for the middle-class! Yay!

    Be careful what you wish for.



    https://thinkprogress.org/trump-immediately-revokes-price-break-for-mortgages-78dc3624ccf6#.x7dmpvikw
  2. Joined
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    21 Jan '17 20:06
    Originally posted by Suzianne
    Congrats, all you middle-class Trump supporters!

    The Fourth Reich has just kicked us right in the groin, and on Day One!

    Trump just cancelled a mortgage fee rate cut scheduled to go into effect on Jan. 27. This fee cut would have saved homeowners with a mortgage through FHA about $500 a year.

    "Analysts heralded the fee cut, a policy championed by ...[text shortened]... ://thinkprogress.org/trump-immediately-revokes-price-break-for-mortgages-78dc3624ccf6#.x7dmpvikw
    Yep. First act to screw the working class.
  3. SubscriberSuzianne
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    21 Jan '17 23:05
    Originally posted by Kunsoo
    Yep. First act to screw the working class.
    And I notice cricket sounds coming from the conservative peanut gallery.

    Time for some serious "head-in-the-sand" time, I guess.
  4. Account suspended
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    22 Jan '17 11:05
    Originally posted by Suzianne
    Congrats, all you middle-class Trump supporters!

    The Fourth Reich has just kicked us right in the groin, and on Day One!

    Trump just cancelled a mortgage fee rate cut scheduled to go into effect on Jan. 27. This fee cut would have saved homeowners with a mortgage through FHA about $500 a year.

    "Analysts heralded the fee cut, a policy championed by ...[text shortened]... ://thinkprogress.org/trump-immediately-revokes-price-break-for-mortgages-78dc3624ccf6#.x7dmpvikw
    This was a mean spirited and completely unnecessary act. Its very difficult to understand the rationale of cancelling the mortgage fee rate cut.
  5. Subscriberno1marauder
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    22 Jan '17 13:30
    Originally posted by robbie carrobie
    This was a mean spirited and completely unnecessary act. Its very difficult to understand the rationale of cancelling the mortgage fee rate cut.
    Not really difficult to understand at all:

    In addition, by making FHA loans more expensive, traditional bank mortgages become more competitive. Banks typically earn more in profit from of their own products than from FHA loans. So this initial Trump policy also generates a competitive advantage for mortgage lenders to make more money for their business.

    https://theintercept.com/2017/01/20/on-his-first-day-in-office-trump-raises-taxes-on-middle-class-homebuyers/

    The entire article is an excellent explanation of the issues involved. King Donald I did not appoint all those Goldy Sachs guys to high positions to work against the big banks' interests.
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    22 Jan '17 13:431 edit
    Originally posted by no1marauder
    Not really difficult to understand at all:

    In addition, by making FHA loans more expensive, traditional bank mortgages become more competitive. Banks typically earn more in profit from of their own products than from FHA loans. So this initial Trump policy also generates a competitive advantage for mortgage lenders to make more money for their busines ...[text shortened]... t appoint all those Goldy Sachs guys to high positions to work against the big banks' interests.
    Ok thanks I was unaware although from the perspective of helping low to middle income families its difficult to understand. Its still very Scrooge like and mean spirited.
  7. Joined
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    22 Jan '17 13:494 edits
    Originally posted by Suzianne
    Congrats, all you middle-class Trump supporters!

    The Fourth Reich has just kicked us right in the groin, and on Day One!

    Trump just cancelled a mortgage fee rate cut scheduled to go into effect on Jan. 27. This fee cut would have saved homeowners with a mortgage through FHA about $500 a year.

    "Analysts heralded the fee cut, a policy championed by ...[text shortened]... ://thinkprogress.org/trump-immediately-revokes-price-break-for-mortgages-78dc3624ccf6#.x7dmpvikw
    Edit...

    Just looked this thing up. If Obama actually wanted this cut to go into place, why wait until the last month in office to do it?

    You bit. Obama put this into place just to make Trump look like a bad guy. Things have not changed at all.
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    22 Jan '17 15:16
    Hopefully this will help avoid another housing crisis. This does not cost existing loan holders any additional money, it makes it harder for high risk people (scores as low as 580) to get a new mortgage. The banks would of course like to lend to people who having an iffy chance of repaying the loan since these loans generate up front fees and the government (taxpayers) are on the hook if borrower defaults.

    Seems to me to be a sound policy.
  9. Subscriberno1marauder
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    22 Jan '17 15:181 edit
    Originally posted by bob58
    Hopefully this will help avoid another housing crisis. This does not cost existing loan holders any additional money, it makes it harder for high risk people (scores as low as 580) to get a new mortgage. The banks would of course like to lend to people who having an iffy chance of repaying the loan since these loans generate up front fees and the government (taxpayers) are on the hook if borrower defaults.

    Seems to me to be a sound policy.
    Sure it makes it harder and more expensive for people to get a home. Great policy.

    Banks don't like FHA loans precisely because they cannot charge as much in upfront fees because the government tightly regulates these type of mortgages.
  10. Subscriberno1marauder
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    22 Jan '17 15:231 edit
    Originally posted by Eladar
    Edit...

    Just looked this thing up. If Obama actually wanted this cut to go into place, why wait until the last month in office to do it?

    You bit. Obama put this into place just to make Trump look like a bad guy. Things have not changed at all.
    Where'd you look it up .................... Breitbart?

    In fact:

    he outgoing Obama Administration announced the FHA insurance cut on January 9, from 0.85 percent of the mortgage price to 0.60 percent. They did so in direct response to increases in mortgage rates that significantly raised the price of purchasing a home.

    https://theintercept.com/2017/01/20/on-his-first-day-in-office-trump-raises-taxes-on-middle-class-homebuyers/

    Trump could have avoided looking "bad" by not imposing extra costs on homebuyers an hour into his administration.
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    22 Jan '17 15:24
    That's the kind of thinking that caused the housing crisis of 2008, "Everyone should have a house. Don't worry if you can't afford, the taxpayers will pick up the tab". Sure it would be nice if everyone could afford a home but I don't want to be stuck paying for those who can't afford one, particularly since eventually those who cannot afford the loan in the first place lose the home and the banks are the only long term beneficiary.
  12. Joined
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    22 Jan '17 15:30
    Originally posted by no1marauder
    Where'd you look it up .................... Breitbart?

    In fact:

    he outgoing Obama Administration announced the FHA insurance cut on January 9, from 0.85 percent of the mortgage price to 0.60 percent. [b]They did so in direct response to increases in mortgage rates that significantly raised the price of purchasing a home.


    https://theintercep ...[text shortened]... avoided looking "bad" by not imposing extra costs on homebuyers an hour into his administration.[/b]
    In fact it was a last minute move that could have been done years ago.
  13. Subscriberno1marauder
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    22 Jan '17 15:33
    Originally posted by bob58
    That's the kind of thinking that caused the housing crisis of 2008, "Everyone should have a house. Don't worry if you can't afford, the taxpayers will pick up the tab". Sure it would be nice if everyone could afford a home but I don't want to be stuck paying for those who can't afford one, particularly since eventually those who cannot afford the loan in the first place lose the home and the banks are the only long term beneficiary.
    You have an ignorant view of what "caused" the housing crisis.

    At any rate, the FHA has a fund called the Mutual Mortgage Insurance Fund (MMIF) to draw on to cover any defaults in FHA mortgages, so the ones "picking up the tab" are the people with FHA mortgages. That fund is considerably higher than what is required by law already. There is thus no reasonable rationale for not decreasing the rate except that bankers prefer people to take out other types of mortgages that they can charge higher fees on. Contrary to your assertion, this increases the risk as those mortgages are not covered by a separate fund in case of default.
  14. Subscriberno1marauder
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    22 Jan '17 15:35
    Originally posted by Eladar
    In fact it was a last minute move that could have been done years ago.
    Mortgage rates didn't increase "years ago". Nor was the balance in the MMIF so high above statutory required levels "years ago".
  15. Subscriberno1marauder
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    22 Jan '17 15:37
    “After four straight years of growth and with sufficient reserves on hand to meet future claims, it’s time for FHA to pass along some modest savings to working families,” Housing and Urban Development (HUD) Secretary Julian Castro wrote earlier this month in announcing the change.

    https://theintercept.com/2017/01/20/on-his-first-day-in-office-trump-raises-taxes-on-middle-class-homebuyers/

    Not in King Donald I's view.
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