patrick.net

"The fee, which will apply to those buying or refinancing houses after May 1, will affect homebuyers with credit scores of 680 or higher, will amount to roughly $40 per month on a home loan of $400,000, or nearly $500 per year. Homebuyers who make down payments of 15% - 20% will be hit with the largest fees."

mell says

will affect homebuyers with credit scores of 680 or higher

Seriously? 680? That is just a "fair" credit score that is bad enough to only get higher interest rates anyway. So, even the "fair" credit score will subsidize the folks who should not be getting loans at all.

Glad most already have their mortgage in. The xiden admin is hell bent on destroying Merica.

Beatcha
https://patrick.net/post/1379130/2023-04-20-biden-to-reward-thrifty-good-credit?start=1#comment-1944785

Yep, another "transfer payment" scheme by Democrats (or neo-Marxists)

America has morphed into one giant nation of subsidizers.

Fit, healthy, responsible people, through high health insurance premiums, are subsidizing America's obese, many of which are too fat to even walk. (Obesity leads to all kinds of health problems, such as cancer, heart disease, diabetes, etc.)

Responsible, honest citizens subsidize the 'didnnt du nuthins' that steal on the retail level by paying higher prices that are charged to us in order to cover business losses. We pay higher auto insurance premiums because a certain segment of society simply refuses to carry insurance, and typically, don't even have a valid drivers license. We pay higher taxes because a large segment of society lives on welfare because they are too lazy to earn a living. We suffer under skyrocketing inflation because our government continues to find more ways to spend money that they don't have.

Our Government, without asking us, subsidizes countless nations with 'aid' (that actually goes to the corrupt leaders, who in turn, give our politicians a kick back). We're subsidizing Ukraine for a war to the tune of $billions that was created by the warmongering Neo-Cons. Off shore accounts must be busting at the seams.

What is the point of this?

To punish those with good credit and large downpayments?

To reward those with bad credit and small downpayments?

It's insane.

Patrick says

It's insane.

Just another virtue signaling Satanic inversion. Punish the prudent, reward the profligate and the reckless. It's a program of demoralization, after all. Just wait until they start REAL confiscations.

Subsidizing any behavior or otherwise ameliorating the consequences of such behavior ends up encouraging the proliferation of such behavior. Hence the hood rat hoes with 6 baby daddies instead of 1 because that maximizes da welfare. There's a good reason that unwed mothers were scorned before the modern era and only widows were supported.

Great, now we're going down the same path wrt debt - encourage/subsidize debt among those least able to manage it responsibly, and we can all imagine the eventual results.

Not really. Sales prices are determined by buyers, mostly whom are borrowers.

Buyers set the price, what they are able (or willing) to pay, both in cash or downpayment, and (borrowers) on the monthly payments. Those are what set the price, not the factors where the money goes to this and that.

Sellers are the ones who will be punished.

Patrick says

What is the point of this?

To punish those with good credit and large downpayments?

To reward those with bad credit and small downpayments?

It's insane.

It benefits the banks.

Patrick says

What is the point of this?

To punish those with good credit and large downpayments?

To reward those with bad credit and small downpayments?

It's insane.

It's a gift to the banks and the woke brigade, now allied.

The Evil Middle Americans will subsidize any Bank losses giving loans to Bastard Factory Ho Moms and Makework Liberal Arts Bureaucrat Single Women.

"Pay Cash or Fuck You"

joshuatrio says

"Pay Cash or Fuck You"

Then no sale, or no sale at the desired price.

If "cash only" the asking price must come down to meet the buyer's ability or willingness to pay cash-only.

Maybe your remark should be, "I'll Pay Cash or Fuck You".

I seriously thought this was a joke, but I confirmed it with my loan officer/broker. It’s real news. It goes into effect on 5/1.

This is not only for new purchase, but also applicable to refinance. The government agency will keep the 1% fee and use it to subsidize for people with lower FICO scores.

Who will this hurt most? The responsible middle class. For the rich and wealthy, it doesn’t impact them much as 1% fee is a drop in the bucket.

Let’s go Brandon. 🚀🚀

Eman says

I seriously thought this was a joke, but I confirmed it with my loan officer/broker. It’s real news. It goes into effect on 5/1.

This is not only for new purchase, but also applicable to refinance. The government agency will keep the 1% fee and use it to subsidize for people with lower FICO scores.

Who will this hurt most? The responsible middle class. For the rich and wealthy, it doesn’t impact them much as 1% fee is a drop in the bucket.

Let’s go Brandon. 🚀🚀

Are you saying you don't like this?

GNL says

Eman says

I seriously thought this was a joke, but I confirmed it with my loan officer/broker. It’s real news. It goes into effect on 5/1.

This is not only for new purchase, but also applicable to refinance. The government agency will keep the 1% fee and use it to subsidize for people with lower FICO scores.

Who will this hurt most? The responsible middle class. For the rich and wealthy, it doesn’t impact them much as 1% fee is a drop in the bucket.

Let’s go Brandon. 🚀🚀

Are you saying you don't like this?

I like it or not is irrelevant. It’s beyond my control. I asked my friend, who is a Biden supporter, what he thought of it. He evaded my question and his response is below. As I mentioned before, we can’t convince anyone of anything. They’ve already made up their mind.

For me, I shared what someone in the biz told me. I’ll continue to do what I can control. Some cities in the Bay Area have become real shitholes and anti landlords. Just look at the eviction moratorium in Alameda county and LA county. I’m trying to stay away from investing in those counties.

Sounds like apathy. I understand your position but, it only adds credence to the country going to the shitter. However, I will say that if they continue doing these things, you may find yourself looking down the barrel of a wealth tax one day. You got a plan for that?

GNL says

Sounds like apathy. I understand your position but, it only adds credence to the country going to the shitter. However, I will say that if they continue doing these things, you may find yourself looking down the barrel of a wealth tax one day. You got a plan for that?

Who wants to start a mafia to counter the government mafia?

richwicks says

GNL says

Sounds like apathy. I understand your position but, it only adds credence to the country going to the shitter. However, I will say that if they continue doing these things, you may find yourself looking down the barrel of a wealth tax one day. You got a plan for that?

Who wants to start a mafia to counter the government mafia?

I'm just surprised at the people who don't realize it all leads to 1 of 2 things...either a 3rd world shithole where extreme wealth inequality rules which will lead to endless instability (see Africa) or a confiscatory government elected by the have nots. America should care more about everyone having a job/career that will support a person above the level of poverty. You're better off with a social contract that includes everyone. It will effect all of us.

Punish success and reward failure is the Democrat position always.

clambo says

Punish success and reward failure is the Democrat position always.

You don't have an answer.