You have good credit?! Well, that's no fair!! A $15,000 penalty for you!
Biden to hike payments for good-credit homebuyers to subsidize high-risk mortgages
By Dave Boyer - The Washington Times - Tuesday, April 18, 2023
Homebuyers with good credit scores will soon encounter a costly surprise: a new federal rule forcing them to pay higher mortgage rates and fees to subsidize people with riskier credit ratings who are also in the market to buy houses.
The fee changes will go into effect May 1 as part of the Federal Housing Finance Agency’s push for affordable housing, and they will affect mortgages originating at private banks across the country. The federally backed home mortgage companies Fannie Mae and Freddie Mac will enact the loan-level price adjustments, or LLPAs.
Mortgage industry specialists say homebuyers with credit scores of 680 or higher will pay, for example, about $40 per month more on a home loan of $400,000. Homebuyers who make down payments of 15% to 20% will get socked with the largest fees.
The new fees will apply only to Americans buying houses or refinancing after May 1.
Lenders and real estate agents say the changes will frustrate homebuyers with high credit scores and homeowners seeking to refinance because the rule punishes them for their relatively strong financial positions.
“The changes do not make sense. Penalizing borrowers with larger down payments and credit scores will not go over well,” Ian Wright, a senior loan officer at Bay Equity Home Loans in the San Francisco Bay Area, told The Washington Times in an email message. “It overcomplicates things for consumers during a process that can already feel overwhelming with the amount of paperwork, jargon, etc. Confusing the borrower is never a good thing.”
He said the rule will “cause customer-service issues for lenders and individual loan officers when a consumer won’t understand why their interest rate and fees suddenly changed.”
“I am all for the first-time buyer having a chance to get into the market, but it’s clear these decisions aren’t being made by folks that understand the entire mortgage process,” Mr. Wright said.
The new fees “will create extreme confusion as we enter the traditional spring home purchase season,” said David Stevens, a former head of the Mortgage Bankers Association who served as commissioner of the Federal Housing Administration during the Obama administration.
“This confusing approach won’t work and more importantly couldn’t come at a worse time for an industry struggling to get back on its feet after these past 12 months,” Mr. Stevens wrote in a recent social media post. “To do this at the onset of the spring market is almost offensive to the market, consumers, and lenders.”
The housing market has been hit hard by a series of Federal Reserve interest rate hikes that have driven mortgage rates above 6%, roughly double the level from early 2022. The Fed has raised rates rapidly to bring down inflation, which hit a four-decade high of 9.1% last summer.
“In the wake of a 3-percentage-point increase in mortgage rates, now is not the time to raise fees on homebuyers,” Kenny Parcell, president of the National Association of Realtors, told the Federal Housing Finance Agency earlier this year.
Under the new mortgage financing rules, homebuyers with riskier credit ratings and lower down payments will qualify for better mortgage rates and discounted fees.
Federal Housing Finance Agency Director Sandra Thompson, a Biden appointee, said the fee changes will “increase pricing support for purchase borrowers limited by income or by wealth.” The agency calls the overall fee changes “minimal” and said the moves will ensure market stability.
After a storm of criticism, the agency delayed to Aug. 1 an upfront fee for debt-to-income ratios of 40% or more. The ratio is calculated by dividing the homebuyer’s monthly debt payments by gross income. It’s one of the key measures lenders use to determine whether a mortgage applicant qualifies for a loan.
Ms. Thompson said the postponement will help “to ensure a level playing field for all lenders to have sufficient time to deploy the fee.”
The fee changes are intended to subsidize higher-risk borrowers by imposing “an intentional disruption to traditional risk-based pricing,” Mr. Stevens said.
“Why was this done? The answer is simple, it was to try to narrow the gap in access to credit especially for minority home buyers who often have lower down payments and lower credit scores,” he wrote in a post on LinkedIn. “The gap in homeownership opportunity is real. America is facing a severe shortage of affordable homes for sales combined with excessive demand causing an imbalance. But convoluting pricing and credit is not the way to solve this problem.”
He predicted that the Federal Reserve will soon complete its course of tightening its balance sheet and mortgage rates will fall.
“Demand for homes will begin to rise and the same challenges for first-time homebuyers will return,” he said.
Lenders also are worried about the impact of the debt-to-income fee that takes effect in August because homebuyers might feel as if they are in a game of “bait and switch” on their projected borrowing costs.
“When a lender is quoting a borrower, there’s a lot they don’t know yet, such as what the property taxes and insurance payments are per month,” Mr. Wright said. “Changes happen to the mortgage payment and income during escrow, so this will cause frustration to borrowers and lenders for the sudden rate/fee changes. Most of us loan officers will then say let’s ‘eat’ the cost for the borrower to keep them happy (resulting in losses for the lender and loan officer).”
He said the added uncertainty will cause delays “during an already competitive real estate market lacking inventory.”
“For example, due to the low inventory and fierce competition, many buyers must close their transactions in less than 30 days to get their offer accepted,” Mr. Wright said. “The sudden rate changes will cause lenders to ‘re-disclose,’ adding additional days to the transaction. This puts extreme timeline pressure on the buyer and lenders forced to re-underwrite the file for the changes.”
In a letter to Ms. Thompson in February, Mortgage Bankers Association President Bob Broeksmit said the timing of the fee changes was “especially troubling” and that the debt-to-income ratio fee creates “operational issues and quality control” for lenders.
“A borrower’s income and expenses can change several times throughout the loan application and underwriting process, especially considering evolving assumptions concerning the nature of debt and income, and the growth in self-employment, part-time employment, and ‘gig economy’ employment,” Mr. Broeksmit said
Well, I guess if you're going to make your only appearance in months, this is as good as any. Fetterman, being the sly fox that he is posted this at 4:20. MATH!
‘Teen Takeover’; Liberal Networks Refuse to Cover Latest Lawlessness in Chicago
Curtis Houck April 17th, 2023 1:46 PM
Over the weekend, Chicago was the site of further unrest as mobs of teenagers terrorized some of the city’s busiest streets, sending both residents and tourists fleeing amid gunfire that left two teens shot, 14 people arrested, city transportation disrupted, and cars smashed.
None of this interested the broadcast networks of ABC, CBS, and NBC or lefty cable network CNN on their flagship Sunday morning, Sunday evening, and Monday mornings shows. In contrast, all four networks wallowed Monday morning in the fact that Netflix’s Love Is Blind live reunion failed to air Sunday night due to technical difficulties. The horror!
NewsNation was on the case Sunday with seven minutes and 29 seconds over two segments and three news briefs despite having only three hours of programming a day on weekends. Add in a full segment on Monday’s Early Edition, and NewsNation had 10 minutes and five seconds.
The Fox News Channel took until Monday to arrive and spent 11 minutes and 28 seconds from 5:00 a.m. to noon Eastern. MSNBC’s Morning Joe only made a veiled reference spanning 38 seconds courtesy of New York City Mayor Eric Adams (D).
The unrest was the first tease on Sunday’s NewsNation Prime from host Natasha Zouves:
Takeover in Chicago as hundreds of teams take to the streets jumping on cars and smashing windows. Teen seen punching and kicking a person on the ground. NewsNation's own crew was there hearing gunfire ring out as people fled to the scene, we'll show you the video.
Zouves opened the show with more on the “scenes of chaos” from “[w]hat’s being called a teen takeover” with “hundreds of teens taking to the streets” and some “jumping on cars, smashing windows, damaging property, and climbing up buildings.”
“Tourists running from the sound of gunfire. Officers struggling to get this under control. Two teens shot in all of this, but they are expected to survive,” she added. Tossing later to a full report from NewsNation affiliate WGN correspondent Courtney Spinelli.
Spinelli showed footage of the lawlessness that took place with the hoodlums “crowding the area of the loop from Michigan Avenue to Clark Street and [teens] could be seen jumping on parked cars and smashing windows. Two times, groups of teens were also seen punching, kicking, and stomping on someone on the ground.”
She also included soundbites from community activists denouncing the violence as “nuts” and demanding the city government give “the Chicago Police Department the funding and the resources...to take care of this crime in our communities.”
She added that the chaos “was enough to disrupt traffic and CTA service” and despite policing “flood[ing] the scene, attempting to control the crowds,” gunfire still erupted with two teens hit.
She spoke with one woman who said she “used my running capability” to reach her hotel and escape harm.
Unfortunately, NewsNation omitted the statement from Mayor-Elect Brandon Johnson, who defended the teenagers as having “been starved of opportunities in their own communities.”
Over on Fox, Johnson’s lack of concern for his city and how it’s perceived was front and center.
The Faulkner Focus had a three-minute-and-31-second story from host Harris Faulkner and correspondent Garrett Tenney. Faulkner tore into Johnson’s statement: “So if you’re poor, that's what you do? He’s so wrong about that. There’s so many Americans who struggle every day and they don't do that.”
Tenney explained the mass gatherings weren’t contained to Saturday night as it happened for “three nights in a row” even though “[t]he worst of it was Saturday night, right along Chicago's famed Magnificent Mile and near Millennium Park” as “hundreds of teens were roaming the street late at night terrorizing the city.”
Thats so much a radical left socialist policy. Biden will market himself as a moderate, but he is not. He is a socialist commie.
That’s an Oxy moron, considering Goper’s and their spray on hair and tan leader loves Putin and his communist party, while reflecting hatred towards communism state side. Interesting.
A life is not important except in the impact it has on other lives. – Jackie Robinson
Thats so much a radical left socialist policy. Biden will market himself as a moderate, but he is not. He is a socialist commie.
That’s an Oxy moron, considering Goper’s and their spray on hair and tan leader loves Putin and his communist party, while reflecting hatred towards communism state side. Interesting.
If that was truly the case he would have ended trump’s trade war on China 2 years ago.
“While former President Donald Trump and President Joe Biden differ starkly on many policy issues, they are remarkably similar on trade policy. Notably, President Biden has maintained tariffs on billions of dollars of Chinese imports dating to the Trump administration, all while maintaining a flawed process of granting tariff exclusions to select industries. Those tariffs, put in place when Trump invoked Section 301 of the Trade Act of 1974, have not only failed to achieve their objectives, but have hurt U.S. businesses and consumers along the way. As part of its ongoing review of the Section 301 tariffs, the U.S. Trade Representative (USTR) should listen to the overwhelming majority of comments calling for the end of this failed trade war.”
You should do some research before making ridiculous comments with no substance to back it up. But I know, it’s all fair game when you’re a Goper while you expect the libtards to prove these things with actual facts.
A life is not important except in the impact it has on other lives. – Jackie Robinson
Proposition 47 did not end prosecution of thefts under $950 in California
CLAIM: Under Proposition 47 in California thefts under $950 will not be prosecuted.
AP ASSESSMENT: False. Proposition 47 was passed in California in 2014 and reclassified felony theft offenses as misdemeanors. It did not allow shoplifting and petty theft to go unprosecuted.
THE FACTS: The false claim about the proposition circulated on social media with a video showing two individuals walking out of a T.J. Maxx in Granada Hills, California, with duffle bags filled with merchandise and their arms filled with clothing on hangers. No one attempted to stop the pair as they walked out of the store and through the parking lot.
The scene was captured on video by another person in the store and circulated widely on news media.
Adam Carolla, a comedian who hosts a podcast, posted the video to Facebook along with a false comment about Proposition 47.
“Thanks to Prop 47 thefts under $950 will not be prosecuted,” Carolla commented on the post. “So cops will not bother showing up. Just a reminder that you get what you voted for, California!”
But the post is incorrect. The 2014 proposition modified, but did not eliminate, sentencing for many nonviolent property and drug crimes.
“What Prop 47 did was take very low level crimes like petty theft, some petty drug offenses, petty larceny, and classify them as misdemeanors rather than felonies,” said Charis Kubrin, professor of criminology, law and society at the University of California, Irvine, who wrote a study examining the impact of the proposition on crime rates. “It doesn’t mean, like that Facebook post is saying, that you’re not prosecuted or that you aren’t committing a crime.”
According to Alex Bastian, special advisor to Los Angeles District Attorney George Gascón who co-authored Prop 47, most shoplifting was already prosecuted as a misdemeanor anyway.
“What Prop 47 did is increase the dollar amount by which theft can be prosecuted as a felony from $400 to $950 to adjust for inflation and cost of living,” Bastian said. “But most shoplifting cases are under $400 dollars to begin with, so before Prop 47 and after Prop 47, there isn’t any difference.”
Proposition 47 was enacted to comply with a 2011 California Supreme Court order, which upheld that California’s overcrowded prisons violated incarcerated individuals’ Eighth Amendment rights against cruel and unusual punishment.
“In 2011, our prisons were bursting at the seams, and California was ranked either first or second behind Texas as having the highest per capita incarceration rate of any state in the country,” Kubrin said. “It was so bad that the Supreme Court stepped in and told us we needed to reduce our prison population by 33,000 individuals.”
“So the goal of Prop 47 was to limit our prison population, to reduce the number of people that we send to state prisons,” said Kubrin. “Prop 47 has achieved that goal while not causing crime rates to go up.”
Gov. Gavin Newsom signed a law Wednesday aimed at curbing organized retail theft, according to Associated Press reporting. The law allows prosecutors to seek to charge the offense as either a misdemeanor or a felony.
T.J. Maxx’s global media relations team did not respond to a request for comment, nor did store representatives.
___
This is part of The Associated Press’ ongoing effort to fact-check misinformation that is shared widely online, including work with Facebook to identify and reduce the circulation of false stories on the platform.
I guess you didn't bother to read the article I posted. It straight says the crime got reduced to a misdemeanor AND THAT IS WHAT IS CAUSING THE THEFT. Not the garbage you posted.
There will be no playoffs. Can’t play with who we have out there and compounding it with garbage playcalling and worse execution. We don’t have good skill players on offense period. Browns 20 - Bears 17.
Your standard reply, insults. That's what desperate people use when they have nothing else. I understand you are only willing to use right wing extremist news sources and consider them only as "factual", I would like to point out the difference here for anyone that uses logic. Newsmax, the source you used is a highly bias right wing news source. The AP is a very neutral and very much non bias news source.
But do go on with your usual campaign of personal attacks.
Intoducing for The Cleveland Browns, Quarterback Deshawn "The Predator" Watson. He will also be the one to choose your next head coach.
According to Alex Bastian, special advisor to Los Angeles District Attorney George Gascón who co-authored Prop 47, most shoplifting was already prosecuted as a misdemeanor anyway.
“What Prop 47 did is increase the dollar amount by which theft can be prosecuted as a felony from $400 to $950 to adjust for inflation and cost of living,” Bastian said.
The original bill setting $400 dollars as the threshold was passed in 2014. I guess maybe the threshold should have been kept at $100 like it was back in the 70's? What does $400 dollars in merchandise today equal compared to 2014?
Intoducing for The Cleveland Browns, Quarterback Deshawn "The Predator" Watson. He will also be the one to choose your next head coach.
Close but not quite. It's more like you always resort to name calling to those whom you disagree with. Having a discussion that involves civility is not a part of you.
Intoducing for The Cleveland Browns, Quarterback Deshawn "The Predator" Watson. He will also be the one to choose your next head coach.
Anyone with an IQ over 12 would surmise that this does more to encourage theft and absolutely nothing to discourage it. But hey, those people probably need that stuff, so a "cost of living increase" was definitely in order.
In case you missed it, which it appears you did, there's nothing about calling people names stylish or anything involved with what can be considered style at all. And in return you claim that when I bring up counterpoints and differing opinions, rather than try to actually discuss them, you put some negative label stereotype on them in order to avoid any actual discussion. Then you point your finger and accuse me of what that is you actually do. Deflection.
Intoducing for The Cleveland Browns, Quarterback Deshawn "The Predator" Watson. He will also be the one to choose your next head coach.
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