Lovely.
What could possibly go wrong?
Seems like we’ve seen this movie before.
They wanted to stop "red lining" which is just another word for "you don't qualify for the loan". Most of the people living in those areas didn't qualify under the underwriting standards.
First, they created adjustable rate loans (ARMs) with low start rates to qualify unqualified buyers. But when the loans adjusted up, they borrows couldn't afford their payments and defaulted.
Then it progressed to "no documentation" loans where you didn't have to have your assets or income verified in writing to get the loan. You could just tell the lender what your numbers were and you would get the loan.
Finally, it got ludicrously crazy when they developed "no qual" loans where you didn't have to provide documentation nor qualify for the loan. You could lie all you wanted and you were given a loan.
It all worked fine until the housing market and interest rates turned and everybody stopped paying. Sent the country and the world into a decade long recession.
If people don't have their own "skin" in the game, they are most likely to bail on the loan contract when things get tough. Giving people $15,000 for their down payment for their only equity or "skin" in the game, will result in loan defaults right and left when the markets gets tough.
If people don't have anything in the house of their own at risk, they will walk away having lost nothing.
TARP 2.0. Part of the Obama Porklulus 2.0. Porklulus!!!
There are rumors of another Cash for Clunckers coming down the pike as well.
bump for later
Housing bubble here we come.
Clinton
How The Housing Crash Will Happen - (Step by Step!)
The 7 Stages:
Stage 1: Speculation = drives prices up (prices families out) REITs gain ground
Stage 2: Low interest rates = Equity Release, housing becomes leveraged investment for further investment release
Stage 3: People live beyond means = Over optimistic GDP (Fake GDP)
Stage 4: Problem occurs (2008: ARM aka Subprime crisis / 2020 Virus) = Spending stops
Stage 5: High Unemployment = Start of Recessionary Cycle, mortgage & rent payments missed… unemployment scarring. Wage reductions.
Stage 6: Quantitative Easing…
Stage 7: CRASH!
https://m.youtube.com/watch?v=HEI3GIU5m3s
Because you can never have too many subprime loan disasters.
All those illegals walking across the border aren’t going to hire themselves
Cuomo just announced something similar in NYS.
Guess taxpayers aren’t fleeing fast enough.
Then pocketed by the seller, because the price of a house just went up by $15,000.
I was joking about the $80 Big Mac, but I guess we'll see it sooner rather than later.
Does Biden have a plan to adjust gov't administered benefits like Social Security and welfare payments more often than annually?
With so many people unable to work due to Covid how can anyone afford a home?
Yay! The bottomless democrat cookie jar is back!
So how much does the price of a house go up? Somewhere around wait for it $15,000 perhaps more. This is the same play book as college subsidies.
but... in WHAT country?
The housing market right now has too many buyers and not enough houses. It doesn’t matter how much money you have. There aren’t enough houses for the number of buyers.
And now Biden wants to increase the number of buyers?
Can someone tell me who can buy a home with no business and
or no job?
Do these people have ANY connection reality?
Terrible policy but I think my wife may be about to buy a cabin and some land near the Canadian border and get a sweet tax credit. She will be a first time homebuyer, you see...
Where’s my 15k credit for my house or my free college? why buy anything big, just wait til dems get in office eethen its free free free
He wants to spend trillions and does not know what to do with it.