I don’t know what to make of this…

I don’t know what to make of this…

Author
Discussion

W11PEL

Original Poster:

1,034 posts

169 months

Saturday 22nd April 2023
quotequote all
So you keep your nose clean and build up a decent credit score so to underwrite somebody who is, shall we say profligate.

Social credit system? This is just the beginning.

I need some more conspiracy theories as mine have all come true!

https://amp.washingtontimes.com/news/2023/apr/18/j...

grumbledoak

31,766 posts

239 months

Saturday 22nd April 2023
quotequote all
It doesn't sound like social credit. More like a re-run of Clinton's subprime lending disaster that caused the 2008 financial crash. And thus the rich get richer.


W11PEL

Original Poster:

1,034 posts

169 months

Saturday 22nd April 2023
quotequote all
grumbledoak said:
It doesn't sound like social credit. More like a re-run of Clinton's subprime lending disaster that caused the 2008 financial crash. And thus the rich get richer.
It’s definitely socialist engineering.

Robin Hood politics..

CrgT16

2,066 posts

114 months

Saturday 22nd April 2023
quotequote all
I am all to make it easier for people on low incomes or first time buyers to have houses that they can afford but seems an odd and unfair policy. Penalised by being successful or careful with your money?

The idea that everyone should own their home is not correct. House ownership comes with increased costs for maintenance, insurance, etc. for some people their income would not be able to sustain an unexpected cost to repair, etc. renting can be a good option for some and depending where they live.

What I am trying to say is that stretching a low income or first time buyers to max their budget might back fire as they may find themselves not able to pay their mortgage if the house throws a big bill.

House prices are overinflated no doubt but it’s a difficult one to resolve.

A policy soon to be emulated here no doubt!

Catastrophic Poo

5,069 posts

192 months

Saturday 22nd April 2023
quotequote all
The FHFA doesn’t mention credit scoring, it read a little odd in the first place.

Detail from the FHFA talks about debt to income, which makes more sense.

spookly

4,152 posts

101 months

Saturday 22nd April 2023
quotequote all
Just another stealth tax on the middle as always. This time the proceeds go to the lower middle from the upper middle.

If you're really wealthy you will be buying your home outright.
If you reasonably well off but not cash rich then you'll be using a mortgage and have some extra money taken away.
If you're lower middle and just about able to buy then this will help you by taking money from those slightly wealthier and using it to support the risk that you pose to lenders.
Those at the bottom will not benefit as in the current market any low earners have zero chance of buying a property anyway in most of the US.

JagLover

43,596 posts

241 months

Saturday 22nd April 2023
quotequote all
spookly said:
Just another stealth tax on the middle as always. This time the proceeds go to the lower middle from the upper middle.

If you're really wealthy you will be buying your home outright.
If you reasonably well off but not cash rich then you'll be using a mortgage and have some extra money taken away.
If you're lower middle and just about able to buy then this will help you by taking money from those slightly wealthier and using it to support the risk that you pose to lenders.
Those at the bottom will not benefit as in the current market any low earners have zero chance of buying a property anyway in most of the US.
Yep

A surprisingly high number of houses are bought cash, up to 40% in some years in the UK. So it is a policy that doesn't target the wealthy but is about eroding the standard of living of the middle. The sort of thing you would expect from someone like Biden.

nikaiyo2

4,980 posts

201 months

Saturday 22nd April 2023
quotequote all
Lol what could go wrong?

Like all socialism it fails because it has never been tried properly so all that is needed is to keep trying as the outcome will have to change.

Mr Whippy

29,555 posts

247 months

Saturday 22nd April 2023
quotequote all
Lol USA.

Tango13

8,841 posts

182 months

Saturday 22nd April 2023
quotequote all
Is it possible to 'off shore' a mortgage in the US? I know people in the UK have borrowed from foreign banks in the past when the exchange or interest rates have been favourable, just curious as to whether it's possible in the US?

Rivenink

3,936 posts

112 months

Saturday 22nd April 2023
quotequote all
CrgT16 said:
I am all to make it easier for people on low incomes or first time buyers to have houses that they can afford but seems an odd and unfair policy. Penalised by being successful or careful with your money?

The idea that everyone should own their home is not correct. House ownership comes with increased costs for maintenance, insurance, etc. for some people their income would not be able to sustain an unexpected cost to repair, etc. renting can be a good option for some and depending where they live.

What I am trying to say is that stretching a low income or first time buyers to max their budget might back fire as they may find themselves not able to pay their mortgage if the house throws a big bill.

House prices are overinflated no doubt but it’s a difficult one to resolve.

A policy soon to be emulated here no doubt!
It should be a basic human right that people have a roof over their head.

The question then becomes; how does society provide that?

Those of a more socialist outlook might suggest publicly owned housing provided at a fair, affordable rent enables people to live with some security

Those of a more capitlist outlook might suggest that housing should be privately owned, and people should either own their home, or rent privately from someone else. There is a problem with this approach, in that buying a house is becoming impossible for more and more people, and renting is also becoming rapidly unaffordable.

This seems like a capitalist solution to a flaw in the markets.