Let the games begin, Trump’s first action

[Winston]

In less than an hour after Trump took the oath of office his administration was already hard at work making America great again. First thing, and no, it wasn’t Trump’s formal nominations presented to the Senate. It was not his waiver for General Mathis. Hell it wasn’t even his sick and fascist proclamation of a “National Day of Patriotism”.

Nope, the first thing the Trump administration did was grab five hundred dollars out of the household of damn near every middleclass family with an FHA mortgage. Yep, the hard working middle class families busting their ass attempting to provide for their loved ones while struggling with stagnating incomes were about to get themselves some needed relief. The Obama administration had scheduled a rate cut in mortgage insurance.

And worse, they tried to slide it by. Remember those infamous Friday afternoon news dumps? Well this wasn’t even a news dump. It was not even mentioned by Spicer, the new press secretary. Just sent out a letter.

https://portal.hud.gov/hudportal/documents/huddoc?id=17-07ml.pdf

I can’t imagine what they were thinking. I mean I can see who this can help. But five hundred dollars? I mean talk about shooting a gift horse in the mouth. Five hundred dollars in disposable income was about to hit hundreds of thousands of households. Now, it is going to stay in the government’s coffer.

But this is a pretty good signal of things to come. And with actions like that, well those GDP growth promises are nothing more than pie in the sky. Pretty soon we will be mentioning Friday news dumps and the good old days in the same sentence. And middle class, you best invest in some Vaseline, you haven’t even went to bed with Trump as president and he has already given you a reaming.


http://www.commondreams.org/news/20...esident-trump-delivers-punch-gut-middle-class

 

[Winston]

Nothing? Nothing from the Trump crowd?

Great. We can use this thread as a record. Every time the Trump administration sticks it to the working class that they pretend to represent I will post the action in this thread. Maybe we can make it through the weekend without further actions but I am sure next week will bring even more unpleasant surprises for working Americans.

 

[pwjohn]

Don't forget! Trump can shoot people at random and repubs will still vote for him.

 

[EvilCat Breath]

It was a landmine for Trump. He didn't fall for it.

Trump already suspends Obama-era FHA mortgage insurance cut

 

[percysunshine]

.
No way..unbelievable. The next thing you know, Trump will turn off all the Obamaphones.

 

[Winston]

Land m

It was a landmine for Trump. He didn't fall for it.

Trump already suspends Obama-era FHA mortgage insurance cut

Landmine? Are you kidding me? What, is your argument the government couldn't afford the decrease? How can you possibly justify repealing the ACA or cutting taxes then.

Nope. You can't make that argument. It was not about the cost.

See, when the FHA lowers the cost of getting a loan it puts pressure on private banks to reduce their costs in order to stay competitive. That's what is happening here. It is government sanctioned RENT SEEKING.

Had this change went into effect banks would have lowered their mortgage costs as well. The difference between what the cost of the loan would have been after the premium change, and what it is now that the change has been "postponed" is called RENT.

So, the very first action of the Trump administration is the protection of rent seeking opportunities for his wealthy donors AT THE EXPENSE of the working people he claims to represent.

Honestly, I don't give a damn what he says. I am more interested in what he DOES.

 

[strollingbones]

posting about trumps broken promises and screwing the working and middle class you will be a busy man

 

[Truth2Know]

Nothing? Nothing from the Trump crowd?

Here's a link to details that should help your understanding of this action: HUD suspends FHA mortgage insurance rate cut an hour after Trump takes office

From the article: "An hour after Donald Trump assumed the presidency Friday, his administration indefinitely suspended a pending rate cut for mortgage insurance required for FHA-backed loans, which are popular with first-time home buyers and those with poor credit." Note the reference to first-time home buyers and those with poor credit.

Also: "Borrowers can qualify for an FHA-backed mortgage, with down payments as small as 3.5%, even with a credit score as low as 580, which could signal a past bankruptcy or debts sent to collection." Do you really want to make it easier for people who can't pay the typical 20% down for a house or with painfully low credit scores to be able to obtain a mortgage? Remember 2008?

And: "Carson also said he was surprised by the recent FHA rate cut and promised that if confirmed he would work with the “FHA administrator and other financial experts to really examine that policy.”" Seems prudent to really look into the details of any action before proceeding with any rate cut.

Finally: "If the planned reductions went into effect, borrowers who put down less than 5% on a $600,000, 30-year mortgage would have saved $1,500 a year. The Obama administration estimated that new FHA borrowers across the nation would have saved an average of $500 a year."
Notice that these are new FHA borrowers. Your claim of " ...the Trump administration did was grab five hundred dollars out of the household of damn near every middle class family with an FHA mortgage." is grossly exaggerated. Also, new borrowers would just be paying what the recent borrows were paying. Should new borrows be able to buy "more house" with their $500 savings? Again, remember 2008?

I am happy that someone like Dr. Ben Carson will be determining what is a fair insurance rate for some lower income people seeking to buy a home. While doing this, he will also be protecting the economy and the people themselves from buying homes they really can't afford.

Rest assured that the hard working middle class families you are so concerned about, those with current mortgages and those capable of a 20% down payment (which I feel should be mandatory), are not affected by this rate reduction hold.

 

[esthermoon]

In less than an hour after Trump took the oath of office his administration was already hard at work making America great again. First thing, and no, it wasn’t Trump’s formal nominations presented to the Senate. It was not his waiver for General Mathis. Hell it wasn’t even his sick and fascist proclamation of a “National Day of Patriotism”.

Nope, the first thing the Trump administration did was grab five hundred dollars out of the household of damn near every middleclass family with an FHA mortgage. Yep, the hard working middle class families busting their ass attempting to provide for their loved ones while struggling with stagnating incomes were about to get themselves some needed relief. The Obama administration had scheduled a rate cut in mortgage insurance.

And worse, they tried to slide it by. Remember those infamous Friday afternoon news dumps? Well this wasn’t even a news dump. It was not even mentioned by Spicer, the new press secretary. Just sent out a letter.

https://portal.hud.gov/hudportal/documents/huddoc?id=17-07ml.pdf

I can’t imagine what they were thinking. I mean I can see who this can help. But five hundred dollars? I mean talk about shooting a gift horse in the mouth. Five hundred dollars in disposable income was about to hit hundreds of thousands of households. Now, it is going to stay in the government’s coffer.

But this is a pretty good signal of things to come. And with actions like that, well those GDP growth promises are nothing more than pie in the sky. Pretty soon we will be mentioning Friday news dumps and the good old days in the same sentence. And middle class, you best invest in some Vaseline, you haven’t even went to bed with Trump as president and he has already given you a reaming.


In First Hour, President Trump Delivers 'Punch in the Gut to Middle Class'

Why did you call fascist the proclamation of a National Day of Patriotism?
I think there's nothing fascist in Patriotism.

 

[Silent Warrior]

Another thread posted by libs who don't even understand the topic. The FHA is backed by the government. The fees collected are to protect the FHA in the event of defaults by mortgagors. Lowering the fee increases the risk the FHA could run short of funds and require a taxpayer bailout.

The Obama administration lowered these fees in the final days of his administration just to set this up. He knew Trump would be forced to make the change back and how his mindless minions would react.

Trump's actions means the FHA mortgage holders need to continue to support the advantages they get from the FHA mortgage rather than dump the costs onto the taxpayers in general. All the libs think is “hey, he's taking away our free stuff.” Trump may make a lot of mistakes and probably will, but this is not one of them.

 

[Winston]

Nothing? Nothing from the Trump crowd?

Here's a link to details that should help your understanding of this action: HUD suspends FHA mortgage insurance rate cut an hour after Trump takes office

From the article: "An hour after Donald Trump assumed the presidency Friday, his administration indefinitely suspended a pending rate cut for mortgage insurance required for FHA-backed loans, which are popular with first-time home buyers and those with poor credit." Note the reference to first-time home buyers and those with poor credit.

Also: "Borrowers can qualify for an FHA-backed mortgage, with down payments as small as 3.5%, even with a credit score as low as 580, which could signal a past bankruptcy or debts sent to collection." Do you really want to make it easier for people who can't pay the typical 20% down for a house or with painfully low credit scores to be able to obtain a mortgage? Remember 2008?

And: "Carson also said he was surprised by the recent FHA rate cut and promised that if confirmed he would work with the “FHA administrator and other financial experts to really examine that policy.”" Seems prudent to really look into the details of any action before proceeding with any rate cut.

Finally: "If the planned reductions went into effect, borrowers who put down less than 5% on a $600,000, 30-year mortgage would have saved $1,500 a year. The Obama administration estimated that new FHA borrowers across the nation would have saved an average of $500 a year."
Notice that these are new FHA borrowers. Your claim of " ...the Trump administration did was grab five hundred dollars out of the household of damn near every middle class family with an FHA mortgage." is grossly exaggerated. Also, new borrowers would just be paying what the recent borrows were paying. Should new borrows be able to buy "more house" with their $500 savings? Again, remember 2008?

I am happy that someone like Dr. Ben Carson will be determining what is a fair insurance rate for some lower income people seeking to buy a home. While doing this, he will also be protecting the economy and the people themselves from buying homes they really can't afford.

Rest assured that the hard working middle class families you are so concerned about, those with current mortgages and those capable of a 20% down payment (which I feel should be mandatory), are not affected by this rate reduction hold.

I submit that you don't understand at all. First, just because somebody can qualify with a five percent down payment and a low credit score does not mean everybody does so. Truth is, FHA backed loans accounted for 17.7% of all single family home mortgage loans in Q1 of 2016 and almost ten percent of all refinanced mortgages.

https://portal.hud.gov/hudportal/documents/huddoc?id=FHA_SF_MarketShare_2016Q1.pdf

Second, don't even attempt to make the risk argument. The required capital reserve ratio for the FHA is two percent. They were at 2.3 percent end of last fiscal year. You get back to me when you start worrying about the capital reserve of the PBGC.

And yes, this rate only applies to new borrowers. But, as I have pointed out, there will be an effect on the market. When the rate cut was announced banks cried foul. They were going to have to cut their mortgage insurance premiums. So this increase cost will pass through to every new borrower and every borrower that carries mortgage insurance.

Besides, do you really think all Trump voters have credit scores over 750 and money in the bank for a twenty percent down payment on a new house?

Finally, 2008 was not about banks being forced to make bad loans. It was about them attempting to cover up the risk of those loans by burying them in bundles of good mortgages. In other words, they thought they could take some chicken shit, mix it with some chicken salad, and feed it to investors without the investors tasting the shit.

 

[CrusaderFrank]

After the 08 meltdown, fha should never be allowed near sfh finance

 

[Winston]

Another thread posted by libs who don't even understand the topic. The FHA is backed by the government. The fees collected are to protect the FHA in the event of defaults by mortgagors. Lowering the fee increases the risk the FHA could run short of funds and require a taxpayer bailout.

The Obama administration lowered these fees in the final days of his administration just to set this up. He knew Trump would be forced to make the change back and how his mindless minions would react.

Trump's actions means the FHA mortgage holders need to continue to support the advantages they get from the FHA mortgage rather than dump the costs onto the taxpayers in general. All the libs think is “hey, he's taking away our free stuff.” Trump may make a lot of mistakes and probably will, but this is not one of them.

Like I said, the capital reserve ratio was 2.3%, over the required 2.0% and the fund is growing. In 2009 the capital reserve was not even one percent and the program was bleeding money.

There is one reason for this action and one reason only, protecting the rents of the banks. Trump went right to work for the people that bought him, not the ones that voted for him.

Meet the new boss, same as the old boss. We just got fooled again.

 

[Winston]

In less than an hour after Trump took the oath of office his administration was already hard at work making America great again. First thing, and no, it wasn’t Trump’s formal nominations presented to the Senate. It was not his waiver for General Mathis. Hell it wasn’t even his sick and fascist proclamation of a “National Day of Patriotism”.

Nope, the first thing the Trump administration did was grab five hundred dollars out of the household of damn near every middleclass family with an FHA mortgage. Yep, the hard working middle class families busting their ass attempting to provide for their loved ones while struggling with stagnating incomes were about to get themselves some needed relief. The Obama administration had scheduled a rate cut in mortgage insurance.

And worse, they tried to slide it by. Remember those infamous Friday afternoon news dumps? Well this wasn’t even a news dump. It was not even mentioned by Spicer, the new press secretary. Just sent out a letter.

https://portal.hud.gov/hudportal/documents/huddoc?id=17-07ml.pdf

I can’t imagine what they were thinking. I mean I can see who this can help. But five hundred dollars? I mean talk about shooting a gift horse in the mouth. Five hundred dollars in disposable income was about to hit hundreds of thousands of households. Now, it is going to stay in the government’s coffer.

But this is a pretty good signal of things to come. And with actions like that, well those GDP growth promises are nothing more than pie in the sky. Pretty soon we will be mentioning Friday news dumps and the good old days in the same sentence. And middle class, you best invest in some Vaseline, you haven’t even went to bed with Trump as president and he has already given you a reaming.


In First Hour, President Trump Delivers 'Punch in the Gut to Middle Class'

Why did you call fascist the proclamation of a National Day of Patriotism?
I think there's nothing fascist in Patriotism.

Führergeburtstag – Wikipedia

 

[Silent Warrior]

Sorry Winston, but you are wrong. After the mortgage crisis we went through and the near melt down of the FHA we should be more careful. You correctly stated the capital position of FHA, but that is part of the problem. The capital requirement for banks is 8% and that has proven to be barely adequate at times in the past. The FHA gets away with a 2% requirement because the federal government will step in to bail it out. If FHA were to get to the the 8% required by of private institutions you might have a point.

 

[Winston]

Sorry Winston, but you are wrong. After the mortgage crisis we went through and the near melt down of the FHA we should be more careful. You correctly stated the capital position of FHA, but that is part of the problem. The capital requirement for banks is 8% and that has proven to be barely adequate at times in the past. The FHA gets away with a 2% requirement because the federal government will step in to bail it out. If FHA were to get to the the 8% required by of private institutions you might have a point.

No, the required capital reserve ratio varies depending on the term of the loan, the credit score of the borrower, and the loan percentage of total value among other variables. And it is not a requirement of the banks, it is a requirement for the insurer, which may or may not be the bank. A 20 year loan with a 15% down payment and a credit score of 700 is going to be 2.33%. Interesting.

 

[Silent Warrior]

No the requirement of 8% is of the banks by the federal regulators, FDIC etc. It does not vary according to the term of any loan, it is set by the monetary size of the bank. They will close a bank if it falls below that ratio and doesn't recapitalize. The purpose of capital it to support the bank in times of gross loss such as too many foreclosures. The FHA is under capitalized and Trump's decision was correct. While the rate on a loan may determine how much of an annual FHA fee is collected, the fee itself is a safety valve to protect the institution in times of loss much as the capital in an other lending institution. Trump's action means the person benefiting from an FHA loan covers the risk, not the taxpayer.

 

[RoshawnMarkwees]

Sounds like Trump is trying to help prevent another gov-driven housing market collapse like what happened in 2008. Make it more difficult for underqualified applicants receiving and ultimately defaulting on mortgages.

 

[Winston]

No the requirement of 8% is of the banks by the federal regulators, FDIC etc. It does not vary according to the term of any loan, it is set by the monetary size of the bank. They will close a bank if it falls below that ratio and doesn't recapitalize. The purpose of capital it to support the bank in times of gross loss such as too many foreclosures. The FHA is under capitalized and Trump's decision was correct. While the rate on a loan may determine how much of an annual FHA fee is collected, the fee itself is a safety valve to protect the institution in times of loss much as the capital in an other lending institution. Trump's action means the person benefiting from an FHA loan covers the risk, not the taxpayer.

I give you props for trying. But you are confusing the capital reserve requirements of a bank, there to protect them against a run on deposits, and the capital reserve requirement of an insurer, there to make sure the insurer has enough assets to pay any potential claim.

And what is the difference between FSLIC, who stands behind those banks and uses taxpaying funding to cover any shortfalls in claims funding, and FHA mortgage insurance? It is OK for taxpayers to backstop those hundred thousand dollar savings account but not the hundred thousand dollar mortgage?

I am not buying the risk justification. But if you want to run with that, well then it is pretty telling that the absolute first action the Trump administration does upon gaining office is up the risk premium on home loans. Guess they figure it is going to be harder for those FHA mortgage holders to pay their mortgage in a Trump administration than under an Obama administration.

Think about that 20 year mortgage with the 700 credit score at 2.33%. That means that with a credit score lower, well it would be advantageous to go with an FHA loan. If your score is higher, a private loan would be more cost effective. But if the FHA rate drops to 2.0% they will draw the good credit score low risk mortgage away from the private banks. That is the only reason, and I mean the ONLY REASON, that this would be one of the first actions of any administration.

And if it is the risk pool you are worried about, drawing those good quality mortgages into the risk pool would IMPROVE it's claim paying ability. Which could have been one of the objectives of the Obama administration.

 

[Call Sign Chaos]

In less than an hour after Trump took the oath of office his administration was already hard at work making America great again. First thing, and no, it wasn’t Trump’s formal nominations presented to the Senate. It was not his waiver for General Mathis. Hell it wasn’t even his sick and fascist proclamation of a “National Day of Patriotism”.

Nope, the first thing the Trump administration did was grab five hundred dollars out of the household of damn near every middleclass family with an FHA mortgage. Yep, the hard working middle class families busting their ass attempting to provide for their loved ones while struggling with stagnating incomes were about to get themselves some needed relief. The Obama administration had scheduled a rate cut in mortgage insurance.

And worse, they tried to slide it by. Remember those infamous Friday afternoon news dumps? Well this wasn’t even a news dump. It was not even mentioned by Spicer, the new press secretary. Just sent out a letter.

https://portal.hud.gov/hudportal/documents/huddoc?id=17-07ml.pdf

I can’t imagine what they were thinking. I mean I can see who this can help. But five hundred dollars? I mean talk about shooting a gift horse in the mouth. Five hundred dollars in disposable income was about to hit hundreds of thousands of households. Now, it is going to stay in the government’s coffer.

But this is a pretty good signal of things to come. And with actions like that, well those GDP growth promises are nothing more than pie in the sky. Pretty soon we will be mentioning Friday news dumps and the good old days in the same sentence. And middle class, you best invest in some Vaseline, you haven’t even went to bed with Trump as president and he has already given you a reaming.


In First Hour, President Trump Delivers 'Punch in the Gut to Middle Class'

Fake news, you don't fund something you are repealing, obamacare will be as if it never was by the end of the month, Price has has a replacement since before it passed.