Posted on 05/15/2015 8:32:56 AM PDT by yoe
Housing: If you need federal subsidies to pay your apartment rent, it's a good bet you can't afford to buy a new home. But don't tell that to the Obama regime. It's pressuring banks to lend even to Section 8 voucher recipients.
In a new regulatory bulletin, the Consumer Financial Protection Bureau warns home lenders that they can be investigated for discrimination if they reject Section 8 vouchers as a valid source of income for low-income minorities applying for mortgages.
The agency argues that underwriting policies that exclude such welfare payments could have a "disparate impact" on minority borrowers and therefore violate civil-rights laws.
"The bureau has become aware of one or more institutions excluding or refusing to consider income derived from the Section 8 HCV Homeownership Program during mortgage loan application and underwriting processes," the three-page bulletin said.
Explained CFPB Director Richard Cordray, "Consumers should not be put at a disadvantage just because they receive public assistance." And strapping them with 30-year debt doesn't put them at a disadvantage? Did Cordray snooze through the subprime crisis?
(Excerpt) Read more at news.investors.com ...
FedGov is insane.
Criminally insane.
Jeffery Dahmer level criminally insane
It’s only a matter of time until credit scores are abolished as being discriminatory and racist, IMHO.
Wouldn’t that public assistance cease, by definition, to be paid if and when a person bought a home?
That's a small step from saying GM can't charge $50K for a Cadilac because a disparate number of minorities can't afford $50K for a car. Almost the same thing because in both instances the business is being told they have sell at a loss or be charged with discrimination.
They already are. As a white taxpayer I have to work overtime (my time and work time) to pay all my bills, pay people to fix/monitor by credit activity, be limited to loans within my ability to pay back, and basically do things the right way while other people get a pass and can do anything they want and still get loans.
nope, I’m wrong, HUD lets you use Section 8 vouchers to pay your mortgage, too.
I guess it’s income. In fact it’s less likely to get cut than my salary, if history is any guide!
Confirmation- govt caused the housing implosion not banks.
If these regulations go through, look for fundamental changes in the housing market.
For example, we might see the mortgage business change, as lenders pull out of the mortgage business. Maybe we will see more hard money lenders, who aren’t bound by such regulations, become sources of mortgage money. Maybe it will become much more common to see families help finance home purchases, if it becomes hard to find a mortgage lender.
The handwriting will be on the wall if they go through with this. I could see many in the mortgage market just decide not to be in the mortgage business any longer.
If i was a billionaire, I would buy up very large chunks of the nicest prettiest areas of places like martha’s vinyard. Then I would proceed to build on them the world largest section 8 housing complexes, and right next store the world largest wal mart. I would bus people who wanted to live in them for free from such places as baltimore and detroit
What’s that definition of insanity, repeating the same fail, expecting a different outcome?
NOT THIS AGAIN! I remember people refinancing their homes and farms at higher interest rates back in the late 1970s-1980s, spending the money, then when the economy collapsed they lost their homes.
Many people who had never bought homes got them with no down payment, then when repairs needed to be made, they did not know what to do as someone always did it for them as renters.
Others bought homes they simply could not afford. The payments ate them up!
Then it began again in the 2000s, and again many lost their homes when the economy collapsed in 2008, and they ended up owing more than the house was worth.
I know where there are lots of vacant and vandalized homes lost in such deals.
There is also a movement in municipalities to prevent “income discrimination” for rentals.
For example, Austin, Texas has passed an ordinance to say landlords can’t discriminate against tenants who have Section 8 vouchers as an income source to pay for housing, classifying “income discrimination” as akin to skin color and disability status.
Dallas, Texas is considering a similar ordinance, to settle a HUD lawsuit.
LIBs hate Free America. All LIBs should be exiled.
Looked for the Satire tag, found none.
I figured it was only a matter of time before landlords would be forced to accept Section 8 vouchers.
But hasn't the media and govt always maintained that the great majority of those receiving welfare are white? In The Other America Michael Harington focused on poor whites to make his case for federal actions. Ever since the claim has been made that minorities are a minority of welfare recipients. Therefore the claim of disparate impact by the govt's own statements is bogus.
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