Thanks, Obama! (for reals tho)

[mocat]

http://www.washingtonexaminer.com/obama-to-lower-mortgage-insurance-fees/article/2558329

<-- future first time home buyer

 

[K-S-U-Wildcats!]

FHA loans are for poors, and signing up more poors for mortgages they can't really afford is exactly what led to the last crash. So in other words, par for the Obama course. Speaking of which, I wonder where he's golfing today?

For example, from the article you cite...

Fiscal conservatives have faulted the FHA for taking on risk and failing to meet statutory requirements related to cash reserves. By law, it is required to have 2 percent of its portfolio of guarantees held in reserve, but it hasn't met that requirement in years. Before the announced changes, the Obama administration did not expect it to meet the requirement before 2016. In 2013, the FHA required a $1.7 billion bailout from the Treasury.
 
"The federal government should be winding down its involvement in the mortgage business, not engaging in a race to the bottom," said Sen. Bob Corker, R-Tenn., in response to the announcement.
 
House Financial Services Chairman Jeb Hensarling, a Texas Republican, called the move "a grave mistake" that would put the FHA behind in rebuilding capital reserves. He noted that the committee plans to question Castro on the FHA's finances.

My advice would be to save up for a 20% DP and take out a conventional mortgage. You'll save more money than paying that "reduced" FHA fee.

[michigancat]

the government should eliminate the mortgage interest deduction

[K-S-U-Wildcats!]

the government should eliminate the mortgage interest deduction

Agreed. And while we're wishing for things that will never happen, I'd like Congressional term limits and pay cuts and a balanced budget amendment.

[Fedor]

the government should eliminate the mortgage interest deduction

Shut your stupid face, renter!

[michigancat]

the government should eliminate the mortgage interest deduction

Agreed. And while we're wishing for things that will never happen, I'd like Congressional term limits and pay cuts and a balanced budget amendment.

well if we aren't going to eliminate it, we should make it easier for less wealthy people (aka people you so eloquently refer to as "poors") to purchase homes.

[mocat]

i mean, i don't consider myself "a poor" but i also don't have 20% laying around to throw down, udigg?

[michigancat]

i mean, i don't consider myself "a poor" but i also don't have 20% laying around to throw down, udigg?

I would recommend waiting until you get the 20%, too. But, I had to move for work when I had like zero equity in my house and it was really scary/stressful. It's really the only time in my life I've been stressed. Of course, that may never happen to you.

[K-S-U-Wildcats!]

the government should eliminate the mortgage interest deduction

Agreed. And while we're wishing for things that will never happen, I'd like Congressional term limits and pay cuts and a balanced budget amendment.

well if we aren't going to eliminate it, we should make it easier for less wealthy people (aka people you so eloquently refer to as "poors") to purchase homes.

Those are two separate issues. Is it "fair" to provide a perverse incentive to take on more debt? I don't know - I know it's bad policy at least.

But whether it is fair or not, it's just stupid to encourage people who can't afford to put 20 down to take out a loan many magnitudes larger than their annual income. Talk about not learning from mistakes - this is the same bullshit Barney Fwank was advocating 10 years ago.

[K-S-U-Wildcats!]

i mean, i don't consider myself "a poor" but i also don't have 20% laying around to throw down, udigg?

Sorry dude - hope I didn't insult you. Aspiring to own a home is a good thing, and it's possible that taking out a mortgage with less down will work out just fine and not cost you too much more money. I genuinely hope it works out great for you.

It's just that as a matter of overall policy - this is not good.

[Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!)]

PMI rates should be based upon the risk of default. They should not be based upon idiotic political stunts to save first time home buyers and zero equity buyers $3 a month.

[mocat]

i agree with you for the most part, that it is risky to give out loans to people with such small amounts down. but also the lenders are being much much more strict about who qualifies for these type loans.

[mocat]

PMI rates should be based upon the risk of default. They should not be based upon idiotic political stunts to save first time home buyers and zero equity buyers $3 a month.

yeah well it's a lot more than that

[Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!)]

Ignoring how irresponsible and reckless this is from a policy standpoint, if the $75 a month savings quoted is the difference between buying a house with no equity and not, you should not buy a house.

Mortgage interest deductions are okay with me. We need people to die with assets.

[mocat]

well it's not the difference between buying and not buying, but it's just XX amount more going to principal rather than insurance. i mean sheesh i thought i could just come in here and 

[Headinjun]

FHA loans are not just for the poors. Lots of first time buyers straight out of college participate in the program as do many older people in middle class career positions.

Also KSU, dude quit with the Barney Frank caused this bullshit. If you had any type of knowledge of the financial meltdown you would point the finger at the sub-prime mortgage firms (Countrywide) and the investment banks who offered such terms.

Quit playing for the team and deal with the actual facts

[Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!)]

well it's not the difference between buying and not buying, but it's just XX amount more going to principal rather than insurance. i mean sheesh i thought i could just come in here and 

If you put the $75 towards principal, good for you. 

[Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!)]

FHA loans are not just for the poors. Lots of first time buyers straight out of college participate in the program as do many older people in middle class career positions.

Also KSU, dude quit with the Barney Frank caused this bullshit. If you had any type of knowledge of the financial meltdown you would point the finger at the sub-prime mortgage firms (Countrywide) and the investment banks who offered such terms.

Quit playing for the team and deal with the actual facts

Don't forget Fannie, Freddie, va, fha, etc.  Also, the complete failure of a well funded of numerous redundant regulatory bodies. The government had myriad opportunities to fulfill their stated objective and fell flat on its face. Barney Frank was very much a part of the problem, although far from 100% to blame.

That's some of the rest of the facts.

[Headinjun]

FHA loans are not just for the poors. Lots of first time buyers straight out of college participate in the program as do many older people in middle class career positions.

Also KSU, dude quit with the Barney Frank caused this bullshit. If you had any type of knowledge of the financial meltdown you would point the finger at the sub-prime mortgage firms (Countrywide) and the investment banks who offered such terms.

Quit playing for the team and deal with the actual facts

Don't forget Fannie, Freddie, va, fha, etc.  Also, the complete failure of a well funded of numerous redundant regulatory bodies. The government had myriad opportunities to fulfill their stated objective and fell flat on its face. Barney Frank was very much a part of the problem, although far from 100% to blame.

That's some of the rest of the facts.

I can't disagree with the government sponsored regulatory bodies like Fannie and Freddie who also had private market interests and a closer relationship with congress.

But its dumb to always bring up Democrats as the culprit when Republicans ran the committee for the first six years of last decade. Ultimately tho, it was congress being bought out by the financial lobby and government officials revolving back into the private sector that was the problem.

[michigancat]

the government should eliminate the mortgage interest deduction

Agreed. And while we're wishing for things that will never happen, I'd like Congressional term limits and pay cuts and a balanced budget amendment.

well if we aren't going to eliminate it, we should make it easier for less wealthy people (aka people you so eloquently refer to as "poors") to purchase homes.

Those are two separate issues. Is it "fair" to provide a perverse incentive to take on more debt? I don't know - I know it's bad policy at least.

But whether it is fair or not, it's just stupid to encourage people who can't afford to put 20 down to take out a loan many magnitudes larger than their annual income. Talk about not learning from mistakes - this is the same bullshit Barney Fwank was advocating 10 years ago.

We need people to die with assets.

[K-S-U-Wildcats!]

FHA loans are not just for the poors. Lots of first time buyers straight out of college participate in the program as do many older people in middle class career positions.

Also KSU, dude quit with the Barney Frank caused this bullshit. If you had any type of knowledge of the financial meltdown you would point the finger at the sub-prime mortgage firms (Countrywide) and the investment banks who offered such terms.

Quit playing for the team and deal with the actual facts

I'm well aware of the actual facts - I suspect quite a bit more than you. This is my industry. I'm not going to write a book on the details of the subprime mortgage crisis on a message board. Of course Barney Fwank was not the primary culprit, but he was one of the most outspoken cheerleaders for these terrible policies, so he makes for a good example. Plus, I don't think anyone provides a better caricature of a corrupt buffoon than Barney.

[sys]

PMI rates should be based upon the risk of default. They should not be based upon idiotic political stunts to save first time home buyers and zero equity buyers $3 a month.

but they mostly aren't.  the vast majority of people don't shop for pmi, they just accept whoever the mortgage issuer or servicer "recommends".  it's a ridiculously profitable industry.

[sys]

the government should eliminate the mortgage interest deduction

Agreed. And while we're wishing for things that will never happen, I'd like Congressional term limits and pay cuts and a balanced budget amendment.

changing it from a deduction to a credit is probably politically feasible and would be a significant improvement.

[sys]

PMI rates should be based upon the risk of default. They should not be based upon idiotic political stunts to save first time home buyers and zero equity buyers $3 a month.

but they mostly aren't.  the vast majority of people don't shop for pmi, they just accept whoever the mortgage issuer or servicer "recommends".  it's a ridiculously profitable industry.

just read on the subject a little more and found out that no one shops for pmi.  the lender selects, the borrower pays.  what a joke.

[Cire]

As someone who was poor when buying my first house in 2006 it was incredibly easy.   I'm closing on a house on Tuesday and the process has been 10 times more difficult because of new Fed regulations.