Jacked: Trump Hikes Mortgages With First Move

[OnePercenter]

One Of President Trump’s First Acts Will Cost Homeowners Millions Of Dollars

Hundreds of thousands of would-be homeowners will be hit with higher costs.

More LMSM lies...

Obama wanted lower costs for middle class.

Trump doesn't.

You're middle class.

Think about it!

 

[thereisnospoon]

When the Obama administration took office the capital reserve ratio of the mortgage insurance fund was less than one percent and it was bleeding money. The target is two percent. Currently, it is sitting at 2.3% and building reserves. The rate cut was justified and could have encouraged more high quality applicants further improving fund stability.

Now I know why the premium decline was postponed but that is neither here nor there. What we are talking about is five hundred dollars on a two hundred grand mortgage or a couple hundred on smaller ones,

What the hell was Trump thinking. The money would have went directly into the pockets of new home owners. I mean "duh huh". You know ever single dime of that five hundred dollars would have went directly into the economy for the purchase of new furniture, or blinds, or yard equipment, something. Now, it is staying in the reserve fund, 70% of it in fixed investments competing with billions of other dollars making a damn near zero return. Money for rent, instead of money spent.

Regardless of the politics, not a bright move economically at all and not a very promising sign about the administrations interdepartmental communications. It either means that his HUD department was not communicating with his OMB, his OMB is a bunch of dumbasses, or neither department gives a hoot about the economy and instead is protecting the business interest of Trump and the Republican party's financial backers.

<LOL..NO ONE was getting a dime. Jeez....

 

[OnePercenter]

Hey guys! Why would helying people get into homes be good for Americans anyway? I mean, who wants to save money when buying a home?

If an extra $41.66 a month helps someone get into a house they should not take out that mortgage.

Another sad example of this was back in the 90's the Dems wanted an 8% increase in the children's lunch program. The Repubs gave them 6% in the budget and the left successfully rebranded the 6% increase as a "cut" in the program. You lefty's are nut jobs.

Reducing food for kids is a GOOD thing?

Sometimes the less someone says is better. Even a self-proclaimed billionaire like can tell that a 6% increase is an increase.

Sometimes the less someone says is better. Even a self-proclaimed billionaire like can tell that a 6% increase is an increase.

Correct, but not as good as 8%. I can't believe you want to debate food for kids.

 

[Winston]

When the Obama administration took office the capital reserve ratio of the mortgage insurance fund was less than one percent and it was bleeding money. The target is two percent. Currently, it is sitting at 2.3% and building reserves. The rate cut was justified and could have encouraged more high quality applicants further improving fund stability.

Now I know why the premium decline was postponed but that is neither here nor there. What we are talking about is five hundred dollars on a two hundred grand mortgage or a couple hundred on smaller ones,

What the hell was Trump thinking. The money would have went directly into the pockets of new home owners. I mean "duh huh". You know ever single dime of that five hundred dollars would have went directly into the economy for the purchase of new furniture, or blinds, or yard equipment, something. Now, it is staying in the reserve fund, 70% of it in fixed investments competing with billions of other dollars making a damn near zero return. Money for rent, instead of money spent.

Regardless of the politics, not a bright move economically at all and not a very promising sign about the administrations interdepartmental communications. It either means that his HUD department was not communicating with his OMB, his OMB is a bunch of dumbasses, or neither department gives a hoot about the economy and instead is protecting the business interest of Trump and the Republican party's financial backers.

<LOL..NO ONE was getting a dime. Jeez....

Wow, Economics is really challenging for your righties ain't it.

So, along about March a young couple, probably not unlike my son and his fiance, purchase a new house with a $200,000 FHA mortgage. Yes, their mortgage insurance premium is the same as it is now. But, had the cut been allowed to go into effect, they would have saved five hundred dollars a year. In economics, this is called opportunity cost.

Now here is why the move was just stupid. That five hundred dollars would have went directly into the hands of new home buyers. What better demographic to generate DEMAND. It would have went to purchase blinds, carpet, tableware---hell, you name it. It could have been used to pay plumbers, or electricians, or exterminators.

But nope, that five hundred dollars is going to be going right where it is going today. Into the loss reserve fund of the FHA, seventy percent of which is invested in fixed income. Bonds, treasuries, GIC's. Instead of generating demand it is going to be generating "rents", interest--displacing demand to the general economy. But yes, it will increase the "demand" of fixed income investments.

So see, it don't take a rocket scientist to figure out who this is helping and who this is hurting. And there is more at play here than fixed income investments and mortgage premiums.

But what is really going to be funny is when this rate cut, which has only been "suspended", is implemented all you guys are going to have to eat all the bullshit you spout about how it was a trap, or that the cut was not justified, or how it is Trump saving the day from financial meltdowns caused by people of color getting mortgages.

Because, honestly, I have enough faith that even the overwhelmed Trump administration can see that the Macroeconomic benefit of the rate cut clearly outweighs any minimal effect on the solvency of the loss reserve fund rescinding it might extend. If not, then I know what it was really about and might see some future class action opportunities.

 

[JQPublic1]

$500 dollars is half a mortgage payment on some starter homes. Saving that much each month would make it easier to maintain such a home , furnish it, and keep food on the table.

Hey dumb ass pay attention, their talking about 500 bucks a year, less than 42 dollars a month.

BTW.. dimwit it is "They're" not "their."

Poor baby, reduced to playing spelling police. LMAO

But you don't know the difference between PMI and FHAI...Nah..na na na nan NAAAAA

Nevertheless, the op is spot on... If the FHA rates stay the same, because of Trump, new home buyers using FHA Insurance will be paying $500 more per year on a $200,000 home.

No..They will not. There IS NO increase in fees. The amount/percentage stays the same.
The proposal to lower the rate was rescinded. No one's expenses increased a dime.
This is the same lib logic that gave us the idea that if a spending increase in a particular budget item is not approved, the budget was 'cut'....No it was NOT. The budget remains the same.

I'll be kind just this once. Here is the major thing to take notice of in this topic: NEW HOME BUYERS

That term does NOT apply to existing home owners who already have a a home.

Are you still with me?

2. MORTGAGE RATES: These are different from Mortgage insurance rates and typically are the rates charged by lending institutions to finance homes for New Home Buyer's.

3. MORTGAGE INSURANCE: This is a product you pay to protect the lender's interests in case you default on your loan. If your home is financed through FHA you can buy FHA mortgage Insurance through FHA . You get a better deal, ( lower cost) than with PMI or Private Mortgage


4. Mortgage rates (item 2.) are rising and that trend is predicted to continue making the cost for NEW HOMES more prohibitive.

5. The Obama administration wanted to keep the housing market viable in the face of increasing mortgage rates. He could not dictate mortgage rates or PMI rates but he could lower premiums on FHA insurance rates to off set rising mortgage rates.

6. Keep in mind that NEW HOME BUYERS who opt for Mortgage INSURANCE do not have a down payment of 20% so they are, typically, not as affluent as those who do. If you put 20 % down you are not required to buy Mortgage insurance.

7. People who put down 20% pay the going mortgage rate and it stays that way from the time the contract is signed until the duration 15 or 30 years typically.

8. People who have to pay MORTAGE premiums AND FHA MORTGAGE INSURANCE combined incur a higher cost right off the bat to protect the lender's interest.

9/. Obama sought to lower that higher cost by reducing FHA mortgage insurance.

10.So, in effect, a rising mortgage rate means more money out of the pockets of new home buyers whether they opt for mortgage insurance or not. But for those who have no choice but to buy mortgage insurance, the cost is even higher. Trump undercut those having to pay mortgage insurance when he blocked their access to lower FHA mortgage insurance rates.

 

[GWV5903]

Obama wanted lower costs for middle class.

Cutting the MIP is not whats needed now...

Trump doesn't.

Wrong, prices have inflated too fast, but you would have to know what you're talking about first...

You're middle class.

No I'm not...

 

[Vandalshandle]

Adolf Trump cancelled the rate reduction that President Obama had in place that was scheduled to go into effect on January 27.

You are not being fair to Trump. he did not launch a nuclear attack on anybody from the inaugural stage, so that means that he is dedicated to peace!

 

[OnePercenter]

Obama wanted lower costs for middle class.

Cutting the MIP is not whats needed now...

Trump doesn't.

Wrong, prices have inflated too fast, but you would have to know what you're talking about first...

You're middle class.

No I'm not...

WTF are you bloviating about?

 

[usmbguest5318]

Obama's EO offered lower costs to homebuyers. Trump's EO rescinded the offer.

 

[GWV5903]

WTF are you bloviating about?

Mortgage Insurance Premiums, MIP...

Housing prices have hyper inflated over the last 5 years, fact...

Dribble on dumb ass...

 

[buckeye45_73]

One Of President Trump’s First Acts Will Cost Homeowners Millions Of Dollars

Hundreds of thousands of would-be homeowners will be hit with higher costs.

WASHINGTON ― With what may have been his first presidential order, Donald Trump made it more expensive for working- and middle-class Americans to buy their first homes. The move will increase costs for 750,000 to 850,000 Americans in the next year alone, according to the National Association of Realtors.

The Obama administration had said last week that the Federal Housing Administration would drop the cost of mortgage insurance it sells by almost a third to 0.60 percent. But after Trump took office, the Department of Housing and Urban Development, which oversees the FHA, told lenders the fee cut was off. The reversal of the reduction will mean that homebuyers who borrow $200,000 under the program will see their mortgage insurance fees go up by $500 a year relative to what the Obama administration had ordered, according to figures released by the FHA when the cut was announced.

The reduction was intended to help partially offset the cost of rising mortgage rates and was scheduled to go into effect on Jan. 27. The government sells the insurance in case borrowers default.

More: Jacked: Trump Hikes Mortgages With First Move

$500 a year? This is only the beginning.

This is the bullshit liberals do.

First it would save me 29 dollars per month

BUT

It would allow banks to lend to riskier people, we don't Mr want that shit again.....and democrats would just blame banks again. Trump is doing the right thing.

 

[buckeye45_73]

Hey dumb ass pay attention, their talking about 500 bucks a year, less than 42 dollars a month.

BTW.. dimwit it is "They're" not "their."

Poor baby, reduced to playing spelling police. LMAO

But you don't know the difference between PMI and FHAI...Nah..na na na nan NAAAAA

Nevertheless, the op is spot on... If the FHA rates stay the same, because of Trump, new home buyers using FHA Insurance will be paying $500 more per year on a $200,000 home.

No..They will not. There IS NO increase in fees. The amount/percentage stays the same.
The proposal to lower the rate was rescinded. No one's expenses increased a dime.
This is the same lib logic that gave us the idea that if a spending increase in a particular budget item is not approved, the budget was 'cut'....No it was NOT. The budget remains the same.

I'll be kind just this once. Here is the major thing to take notice of in this topic: NEW HOME BUYERS

That term does NOT apply to existing home owners who already have a a home.

Are you still with me?

2. MORTGAGE RATES: These are different from Mortgage insurance rates and typically are the rates charged by lending institutions to finance homes for New Home Buyer's.

3. MORTGAGE INSURANCE: This is a product you pay to protect the lender's interests in case you default on your loan. If your home is financed through FHA you can buy FHA mortgage Insurance through FHA . You get a better deal, ( lower cost) than with PMI or Private Mortgage


4. Mortgage rates (item 2.) are rising and that trend is predicted to continue making the cost for NEW HOMES more prohibitive.

5. The Obama administration wanted to keep the housing market viable in the face of increasing mortgage rates. He could not dictate mortgage rates or PMI rates but he could lower premiums on FHA insurance rates to off set rising mortgage rates.

6. Keep in mind that NEW HOME BUYERS who opt for Mortgage INSURANCE do not have a down payment of 20% so they are, typically, not as affluent as those who do. If you put 20 % down you are not required to buy Mortgage insurance.

7. People who put down 20% pay the going mortgage rate and it stays that way from the time the contract is signed until the duration 15 or 30 years typically.

8. People who have to pay MORTAGE premiums AND FHA MORTGAGE INSURANCE combined incur a higher cost right off the bat to protect the lender's interest.

9/. Obama sought to lower that higher cost by reducing FHA mortgage insurance.

10.So, in effect, a rising mortgage rate means more money out of the pockets of new home buyers whether they opt for mortgage insurance or not. But for those who have no choice but to buy mortgage insurance, the cost is even higher. Trump undercut those having to pay mortgage insurance when he blocked their access to lower FHA mortgage insurance rates.

Viable for whom?

 

[Winston]

One Of President Trump’s First Acts Will Cost Homeowners Millions Of Dollars

Hundreds of thousands of would-be homeowners will be hit with higher costs.

WASHINGTON ― With what may have been his first presidential order, Donald Trump made it more expensive for working- and middle-class Americans to buy their first homes. The move will increase costs for 750,000 to 850,000 Americans in the next year alone, according to the National Association of Realtors.

The Obama administration had said last week that the Federal Housing Administration would drop the cost of mortgage insurance it sells by almost a third to 0.60 percent. But after Trump took office, the Department of Housing and Urban Development, which oversees the FHA, told lenders the fee cut was off. The reversal of the reduction will mean that homebuyers who borrow $200,000 under the program will see their mortgage insurance fees go up by $500 a year relative to what the Obama administration had ordered, according to figures released by the FHA when the cut was announced.

The reduction was intended to help partially offset the cost of rising mortgage rates and was scheduled to go into effect on Jan. 27. The government sells the insurance in case borrowers default.

More: Jacked: Trump Hikes Mortgages With First Move

$500 a year? This is only the beginning.

This is the bullshit liberals do.

First it would save me 29 dollars per month

BUT

It would allow banks to lend to riskier people, we don't Mr want that shit again.....and democrats would just blame banks again. Trump is doing the right thing.

Bullshit. There is no change in the borrower requirements that would lead to riskier borrowers. In fact, it does the exact opposite.

This only applies to FHA loans. It does not apply to private loans. Currently, there is kind of a line. Credit score 700, 20 year mortgage. Anyone with a score better than 700, better to get a private mortgage than an FHA loan. We drop the MIP that line moves. A lower MIP does not mean lower quality borrowers, it actually entices higher quality candidates AWAY from private mortgages. Whoops, damn, now I done slipped up and told you the reason for the suspension.

 

[Frankeneinstein]

There has been no hike.

President Obama's rate cut was cancelled by Trump. Therefore - it's a rate hike.

Tokyo Rose is on top of her game today

 

[buckeye45_73]

One Of President Trump’s First Acts Will Cost Homeowners Millions Of Dollars

Hundreds of thousands of would-be homeowners will be hit with higher costs.

WASHINGTON ― With what may have been his first presidential order, Donald Trump made it more expensive for working- and middle-class Americans to buy their first homes. The move will increase costs for 750,000 to 850,000 Americans in the next year alone, according to the National Association of Realtors.

The Obama administration had said last week that the Federal Housing Administration would drop the cost of mortgage insurance it sells by almost a third to 0.60 percent. But after Trump took office, the Department of Housing and Urban Development, which oversees the FHA, told lenders the fee cut was off. The reversal of the reduction will mean that homebuyers who borrow $200,000 under the program will see their mortgage insurance fees go up by $500 a year relative to what the Obama administration had ordered, according to figures released by the FHA when the cut was announced.

The reduction was intended to help partially offset the cost of rising mortgage rates and was scheduled to go into effect on Jan. 27. The government sells the insurance in case borrowers default.

More: Jacked: Trump Hikes Mortgages With First Move

$500 a year? This is only the beginning.

This is the bullshit liberals do.

First it would save me 29 dollars per month

BUT

It would allow banks to lend to riskier people, we don't Mr want that shit again.....and democrats would just blame banks again. Trump is doing the right thing.

Bullshit. There is no change in the borrower requirements that would lead to riskier borrowers. In fact, it does the exact opposite.

This only applies to FHA loans. It does not apply to private loans. Currently, there is kind of a line. Credit score 700, 20 year mortgage. Anyone with a score better than 700, better to get a private mortgage than an FHA loan. We drop the MIP that line moves. A lower MIP does not mean lower quality borrowers, it actually entices higher quality candidates AWAY from private mortgages. Whoops, damn, now I done slipped up and told you the reason for the suspension.

HUD suspends FHS mortgage insurance premium cut. What's it mean?

Yes it makes it harder to lend money...I thought that's what we wanted? We want people to be able to fucking pay for their house.

It also lowers the debt to.income ratio allowing even more marginal borrowers to getting a house.


Liberals again want to have people who are risks to get houses then bitch when they can't pay them back.

 

[jknowgood]

No their fees will remain the same......Read

LOL what part of insurance fees go up by $500 a year did you mis-read?

Well you didn't care that Obama Care raised health insurance rates more than that.

 

[thereisnospoon]

Hey guys! Why would helying people get into homes be good for Americans anyway? I mean, who wants to save money when buying a home?

If one needs "help" to buy a home, they should not be buying a home.