Trump's First Executive Order

Playing devil's advocate, couldn't you argue that this will reduce the number of mortgages to risky people? In other words, this is will help prevent a repeat of 2009.

That's his absolute first priority, to screw middle class homebuyers.The FHA guarantees 16% of loans now, but a few years ago right after the recession was in full swing, they were insuring almost all home loans because banks had retrenched and were hardly offering any home loans. This fee only makes it easier to repay and hardly made it dangerous. Someone who knows more about real estate deals can probably say how exactly this benefits people like Trump.

Nice gift to Goldman Sachs

Screw you middle class.

kid history wrote:

Playing devil's advocate, couldn't you argue that this will reduce the number of mortgages to risky people? In other words, this is will help prevent a repeat of 2009.

No. The Obama administration put in significant reforms in the lending industry to prevent what happened in the late 2000's Trump's appointments have already stated multiple times their intent to dismantle those regulations.

This order has nothing to do with regulating risky lending practices - directly or indirectly.

Truth Tellor wrote:

Nice gift to Goldman Sachs

Screw you middle class.

+1

Since this is a mortgage insurance program, this should really be an actuarial decision made in a civil servant's office. If the reserves and fees and sufficient to cover losses and anticipated losses, keep as is. If there is a surplus building up, lower the fee. If it is not sufficient, raise the fee

I support that. The government should never play favoritism, as in providing a discount to selected groups of people borrowing money.

In the end, the remaining groups will pay for that, one way or the other.

logic? wrote:

I support that. The government should never play favoritism, as in providing a discount to selected groups of people borrowing money.

In the end, the remaining groups will pay for that, one way or the other.

Not if it comes from people who have too much wealth to know what to do with it. Not advocating anything crazy but it makes sense to ease the burden on lower to middle class people on their mortgages and pay for it my upping taxes on people who have multiple homes. We should take better care of all people in this country. Yeah folks should make money but why not have the best services for all people in our country? That should be our goal as a people and for our government.

I would have thought that eliminating ISIS would be a higher priority.

Going to outsource that one.

low hanging fruit wrote:

I would have thought that eliminating ISIS would be a higher priority.

The higher rate had been in place for the entirety of Obama's presidency. It suspiciously looks like it was changed by Barry just to embarrass Donny.

No Respect, no respect... wrote:

The higher rate had been in place for the entirety of Obama's presidency. It suspiciously looks like it was changed by Barry just to embarrass Donny.

It was in response to the Fed starting to raise interest rates again. The raise was based on the economy improvements, but those improvements currently have little benefit to those who Obama intended to benefit.

If anyone bothers to read the story you will see that this will not alter anything anyone pays since the rule was an Obama executive order set to go into effect on Jan 27.

Next, the insurance pays the big evil bank in case there is a default so the insurance does not protect the little guy.

The program affects 16% of mortgages--a good number but not everyone. Only FHA loans.

It amounts to $29/month on a 200K mortgage.

The fund was only 16% above the minimum levels required by law and in 2013 the FHA had to get a bail out from the general revenues due to a shortfall.

luv2run wrote:

If anyone bothers to read the story you will see that this will not alter anything anyone pays since the rule was an Obama executive order set to go into effect on Jan 27.

Next, the insurance pays the big evil bank in case there is a default so the insurance does not protect the little guy.

The program affects 16% of mortgages--a good number but not everyone. Only FHA loans.

It amounts to $29/month on a 200K mortgage.

The fund was only 16% above the minimum levels required by law and in 2013 the FHA had to get a bail out from the general revenues due to a shortfall.

Who profits and asked for this is my question. Was Trump paying attention to PMI details on FHA loans leading up to Jan 20?

No wrote:

No. The Obama administration put in significant reforms in the lending industry to prevent what happened in the late 2000's Trump's appointments have already stated multiple times their intent to dismantle those regulations.

Well, the banks have been busy gutting those rules anyway, pretty much out of sight.. Once again, not that a Clinton presidency would have gone any differently.

Trump's "little guy" is screwed and the first week (day?) wasn't even over.

This is the precursor to the executive order.

Home mortgage industry wins bigly. "Little guy" loses.