Day 1: Screw working class homeowners

Comments

2 responses to “Day 1: Screw working class homeowners”

1. 

   E. Weber

   January 21, 2017

   President Trump chose to remove the risk from taxpayers, instead of the banks. Perhaps you can’t see this because of your bias? How can banks profit if they aren’t going to have the opportunity to provide as many mortgages (high risk though they may be) to those that otherwise would never qualify for them? Under Obama’s plan, the banks’ burden of risk would be shifted to the tax payers. I believe Obama had another agenda with this act and others like them…he and his minions knew that they would be reversed by the incoming administration and the media would do all they can to spin it as you are attempting to do. The Obama administration left a mine field for the Trump administration to navigate as a parting gift. Typical.
2. 

   Tony Novak, CPA

   January 21, 2017

   Whether we agree with the concept or not, public policy has long played a major role in first time homeownership. Government programs enabled many of our parents and grandparents to buy their first homes. The flip side, as you point out, is that taxpayers are at risk. I suspect that the Trump action was more of a ‘knee jerk’ political retaliation rather than because Republicans feel that trimming the mortgage insurance rate in an inflationary period was a bad idea. Remember that the last Republican administration set the rate lower. Obama’s administration raised the mortgage insurance rate after the housing crisis. This was just a move to bring it back closer to historic levels. I agree that buying a home with perhaps 3.5% downpayment is too risky for everybody. Maybe that’s the program Trump ought to direct his attention rather than hurting those that are already in the program and will be struggling with higher mortgage payments this year.