Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Trump Cuts Subsidy to Real Estate Industry, Opponents Call It a "Tax Increase"
Mises Institute ^ | 26 January 2017 | Ryan McMaken

Posted on 01/26/2017 10:11:06 AM PST by VitacoreVision

Edited on 01/26/2017 10:22:13 AM PST by Admin Moderator. [history]

Among the many new directives and executive orders already issued by the Trump administration is a little-noticed order to halt a scheduled cut in mortgage insurance fees levied by the FHA.

Earlier in January, the Obama administration announced it would cut the FHA's insurance premium by a quarter of a percentage point to 0.60 percent, effective on Jan. 27.


(Excerpt) Read more at mises.org ...


TOPICS: Crime/Corruption; Culture/Society; News/Current Events; Politics/Elections
KEYWORDS: realestate; subsidies; trump
Navigation: use the links below to view more comments.
first 1-2021-24 next last
President Trump steering U.S. away from another housing bubble
1 posted on 01/26/2017 10:11:06 AM PST by VitacoreVision
[ Post Reply | Private Reply | View Replies]

To: VitacoreVision

Back in the day, you had to put 20% down to buy a house. The idea was that you had “skin in the game” and were very unlikely to walk away.

But that all changed and it is what gave us the housing bubble. It looks like DJT is trying to reign in the housing market back to “sane” levels.


2 posted on 01/26/2017 10:14:00 AM PST by Mr. Douglas (Best. Election. EVER!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Mr. Douglas

BTW, this will remove a lot of potential home buyers from the market. I expect prices to drop significantly. There will be less flipping, probably, as well.

When more people have to come up with an actual down payment, there will not only be less buyers (deflating prices), but sellers will lower prices to get people into their homes.

Coupled with the last interest rate increase, I think the second bubble is about to burst


3 posted on 01/26/2017 10:16:22 AM PST by Mr. Douglas (Best. Election. EVER!)
[ Post Reply | Private Reply | To 2 | View Replies]

To: VitacoreVision

A subsidy is adrenaline injected into a bad idea so it will live another short while.


4 posted on 01/26/2017 10:21:53 AM PST by lurk (TEat)
[ Post Reply | Private Reply | To 1 | View Replies]

To: VitacoreVision

If anyone understand the real estate market from inside and out - it’s DJT.

He’s made millions in real estate deals. And lost millions too.

I trust his judgment.


5 posted on 01/26/2017 10:23:41 AM PST by Responsibility2nd
[ Post Reply | Private Reply | To 1 | View Replies]

To: Mr. Douglas

Not sure you’re right. Where I live, supply is low, demand high. All I want is small government. Backing out of the maze of regulations and taxation will upend the economy, for awhile.


6 posted on 01/26/2017 10:26:28 AM PST by The Westerner (The real change must be in the textbooks of our nation!)
[ Post Reply | Private Reply | To 3 | View Replies]

To: The Westerner

Where I live, supply is low, demand high.


Yeah. I’m not talking about today. Rather, the next few months. It was a bubble waiting to pop anyway, It only takes a small catalyst to do it. A rate hike here, a subsidy disappearing there, higher income to payment ratio, etc. It doesn’t take much to pop the balloon when it’s really full.


7 posted on 01/26/2017 10:29:02 AM PST by Mr. Douglas (Best. Election. EVER!)
[ Post Reply | Private Reply | To 6 | View Replies]

To: VitacoreVision

Leftists will point out two problems:

Problem #1 — Trump is a real estate guy and he will help all of his friends in the real estate business! Bad Trump! Bad! Bad!
Problem #2 — Trump just cut a subsidy, which means he basically raised taxes, which means the real estate industry is going to take a hit! Bad Trump! Bad! Bad!


8 posted on 01/26/2017 10:30:26 AM PST by ClearCase_guy (Abortion is what slavery was: immoral but not illegal. Not yet.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: All
THE MORTGAGE MELTDOWN UP CLOSE---TAXPAYERS GET SOCKED A 2009 Wall Street Journal investigative report WRT the subprime mortgage borrowing spree that wreaked havoc on the US economy.

It revealed financial schemes by low-income housing groups, Hispanic lawmakers on Capitol Hill, including a congressional Hispanic housing initiative. Subprime mortgage lenders and brokers, colluded together in fraudulent schemes to increase homeownership among Latinos using falsified applications, and other tricks of the trade. (hat tip Federal Financial Institutions Examination Council)

The massive mortgage fraud ended in disaster for which no one has been held responsible. Taxpayers got saddled with billions of dollars in bailout bills.

These subprime activities were not simply the mortgage market at work. They were fueled by avarice, greed, stupidity--all enabled by Congressmen and other groups which leave a trail at the door of then-Cong Joe Baca (D-Cali).

Between 2000 and 2009, Hispanic populations increased; but Hispanic home ownership grew even faster, increasing by 47%, to 6.1 million from 4.1 million, according to the US Census Bureau. Over that same period, homeownership nationally grew by an enemic 8%.

In 2005 alone, mortgages to Hispanics jumped by 29%; Latinos with multiple fraudulent identities in low-paying jobs obtained costly non-prime mortgages---soaring to a shocking 169%, (Research provided by Wall Street Journal)

The subprime mortgage bank fraud network was spearheaded by then-Cong Joe Baca (D-Calif 43rd), in his powerful position as chairman of the Congressional Hispanic Caucus. Baca's district ranks No.5 among all US Congressional districts in percentage of home loans tailored to sub-prime borrowers.

Baca used his the legislative power of his office and his leadership position in the Congressional Hispanic Caucus to calculatedly launch a housing initiative called "HOGAR"-- Spanish for home. conspiract and colluison the Congressuial Hispanic caucuss has been quiet about his role in financing, and, earmarking the blood-thirsty America-hating La Raza. race-based "La Raza" was given tax dollars and Congressionsl earmarks to finance its so-valled mortgage activities.

La Raza's "strategic partnerships” with Wachovia and Bank of America forced banks into giving mortgages to unqualified borrowers that undermined accepted requirements and documentation standards. This triggered billion dollars bailouts and ended up decimating the US economy.

La Raza aided and abetted risky federal and private-home loans to latinos over the last decade forcing the lending industry’ policy of “don’t ask, don’t tell.”

In addition to millions of federal tax dollars, La Raza also collected a $1 million Democratic earmark that funded “community-development” projects. Analysts report that much of it went to (cough) "mortgage counseling."

CUE LAUGH MACHINE.

9 posted on 01/26/2017 10:46:46 AM PST by Liz
[ Post Reply | Private Reply | To 1 | View Replies]

To: All

GENESIS OF THE SUB-PRIME BILKING OF TAXPAYERS
Clinton appointee, Fannie Mae CEO Franklin Raines, Pens a Letter to Shareholders

Excerpted from Raines 2003 Fannie Mae Annual Report

Excerpt ...Ten years ago the typical conforming mortgage required a down payment of 10-20%, and low-down payment mortgages were considered too risky. But then we helped to standardize the 3-5% down payment loan, brought it to global capital markets, and made it available to lenders and communities nationwide. Now low-down payment loans are commonplace. And we just adopted a new variance in our underwriting standards that will make the $500 down payment loan widely available as well...

In 1994, we pledged to provide $1 trillion in capital to ten million underserved families by the end of 2000. Thanks to our housing and industry partners, we met that goal early.

Then in 2000, we launched our American Dream Commitment, a pledge to provide $2 trillion in capital to 18 million underserved families by the year 2010, including $400 billion targeted specifically for minority families (later raised to $700 billion in response to President Bush’s Minority Homeownership Initiative). After four of the strongest years in housing and mortgage finance history, we’ve already surpassed the top-line goals of this commitment. But our work is far from complete.

So in January 2004, we announced our Expanded American Dream Commitment and pledged significant new resources to tackle America’s toughest housing challenges. Our new commitment has three main goals.

First, we will expand access to homeownership for six million first-time home buyers in the next ten years, including 1.8 million minority first-time home buyers.We also will help raise the national minority homeownership rate from 49 percent to 55 percent, with the ultimate goal of closing it entirely.

Second, we will help new and long-term homeowners stay in their homes through a series of initiatives, and commit $15 billion to preserve affordable rental housing and $1.5 billion to support the revitalization of public housing communities.

Third, we will increase the supply of affordable housing and support community development activities in at least 1,000 neighborhoods across the country through our American Communities Fund, and through targeted investments like Low-Income Housing Tax Credits that help finance affordable rental housing.

It is because of initiatives like our Trillion Dollar Commitment and our American Dream Commitment that we have exceeded our HUD affordable housing goals for ten consecutive years. (End Raines excerpt.) (NOTE Raines is a Clinton appointee)


NOTE: Raines was fired for being a crook-—Raines cooked theF/M books to get bonuses. But he walked away a multi-millionaire-—extorting millions from taxpayers for pensions, bonuses, lifetime healthcare, donations to his fave charites....etc, etc, and so on, and so forth, ad infinitum ad nauseaum.


10 posted on 01/26/2017 10:49:29 AM PST by Liz
[ Post Reply | Private Reply | To 1 | View Replies]

To: Mr. Douglas

These mostly would be buyers with credit scores well below 600

Call them future foreclosees

And call the homes they didn’t buy “Not taxpayer insured and bank owned detritus”


11 posted on 01/26/2017 10:56:35 AM PST by silverleaf (Age takes a toll: Please have exact change)
[ Post Reply | Private Reply | To 3 | View Replies]

To: VitacoreVision

I thought they hated “corporate welfare”


12 posted on 01/26/2017 11:05:23 AM PST by Mr. K ( Trump kicked her ass 2-to-1 if you remove all the voter fraud.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: lurk
A subsidy is adrenaline injected into a bad idea so it will live another short while.

Excellent turn of the phrase, The Bard would be proud.

13 posted on 01/26/2017 11:20:32 AM PST by Sergio (An object at rest cannot be stopped! - The Evil Midnight Bomber What Bombs at Midnight)
[ Post Reply | Private Reply | To 4 | View Replies]

To: silverleaf

When I lived in Seattle, during the last housing boom, I knew a guy who had such a lousy credit score that he was declined at an apartment complex.

So he had to buy a house instead.

Dead serious.

Heady times. :-D


14 posted on 01/26/2017 11:24:04 AM PST by Mr. Douglas (Best. Election. EVER!)
[ Post Reply | Private Reply | To 11 | View Replies]

To: VitacoreVision

He’s been in the real estate business for close to four decades. I’d trust him to know what he’s doing.


15 posted on 01/26/2017 11:26:52 AM PST by Buckeye McFrog
[ Post Reply | Private Reply | To 1 | View Replies]

To: Liz

You’re good!


16 posted on 01/26/2017 11:36:32 AM PST by Robert A Cook PE (I can only donate monthly, but socialists' ABBCNNBCBS continue to lie every day!)
[ Post Reply | Private Reply | To 9 | View Replies]

To: Mr. Douglas

and obama was blowing the horn to “increasing opportunities for lower income people to have houses” what’s what got us in trouble. Possible Clinton and the democrats would have continued along that course.


17 posted on 01/26/2017 11:38:06 AM PST by morphing libertarian
[ Post Reply | Private Reply | To 2 | View Replies]

To: Mr. Douglas
Another element not accounted here is a pending credit crunch. It's going to be very hard to get a loan. The net effect will be serious deflation of real estate prices.

I just lost a system administrator from my San Diego office to another employer in VA. The employee could not cobble up enough to qualify to buy even a small condo in San Diego with both spouses working. He could afford a place in VA and had a good enough offer to jump ship. I spent two years training the guy in Linux and VMware to augment his Windows credentials. Once again, I have two offices in two cities with no sysadmins. People in that pay grade can't afford San Diego and don't want to work in Omaha. After camping in a rented bedroom in San Diego for 5 years to help that project, I'm back home in Idaho. No real desire to repeat the experience.

18 posted on 01/26/2017 11:42:35 AM PST by Myrddin
[ Post Reply | Private Reply | To 7 | View Replies]

To: Myrddin; morphing libertarian

The only thing that is going to save us from total financial meltdown is austerity - before it’s too late.

Looks like Trump may actually be doing that. However, like Chemo, it’s gonna hurt like hell before it fixes the problem. I don’t know if ANY politician can survive that.

We’ll find out.


19 posted on 01/26/2017 11:49:55 AM PST by Mr. Douglas (Best. Election. EVER!)
[ Post Reply | Private Reply | To 18 | View Replies]

To: Robert A. Cook, PE; Liz

Was just thinking the same thing. Liz, you are a FR research maven!

Didn’t know La Raza was involved. Did they use pressure group warfare to get BofA, Wachovia to go along with the home loans? Thought Congress passed a law years ago to force lenders to offer loans to risky borrowers? Forgot the name of it.


20 posted on 01/26/2017 12:29:30 PM PST by The Westerner (The real change must be in the textbooks of our nation!)
[ Post Reply | Private Reply | To 16 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-24 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson