Day 1: Screw working class homeowners

It’s really hard for me to believe this is tonight’s business news and not a science fiction story but apparently the first three actions in the Trump White House were apparently to: 1) remove scientific data about climate change from the government’s web site, 2) remove online information defending equal rights for minorities, and 3) cancelling a planned savings for working class homeowners of about $500 per year in their mortgage insurance costs.

Mortgage insurance is paid by financially struggling homeowners who have less than 20% equity in their homes so this $500 expense, more or less, is likely a big deal to their financial security. The move increases profits for large business banks.

What kind of person would do this without fear of outright disalienation by the people? Does he believe that his supporters love him so much they will follow him right up to their financial slaughter?

It appears that this administration could be far worse for the welfare of ordinary Americans than even the strongest Trump opponents feared.


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

  1. E. Weber Avatar
    E. Weber

    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 Avatar
    Tony Novak, CPA

    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.

Leave a Reply

Your email address will not be published. Required fields are marked *