The Obiden Regime’s racist housing plan is far worse than just favoring particular ethnicities.
It adds a major economic attack against responsible homeowners who will now have to pay for the premiums and fees of the credit and default risk permitted for favored races.
This from survivethenews.com.
Citing Marxist buzzwords Diversity, Equity, Inclusion, Sustainability and disparity in ownership rates, the [Obiden] Regime ignored Congress, and directed HUD and FHFA (regulator of Fannie Mae and Freddie Mac) to implement its Affirmatively Furthering Fair Housing (“AFFH”) scheme cheered by Senators Sherrod Brown, Elizabeth Warren, Patty Murray and Catherine Cortez-Masto.
Note: The Trump team found AFFH to be a discriminatory program that would be fundamentally unfair.
Seizing power in 2021, just one pesky problem remained for the Obiden Regime:
The Fair Housing Act of 1968 that prohibits discrimination in the sale, rental, and financing of housing based on race, religion, national origin, sex, handicap and family status.
Not much for abiding by law, the [Obiden cabal] replicated the tricks that had worked in the Obama years and decided to cook up a legal opinion “to take meaningful steps to improving fair housing outcomes.”
On August 31, 2022, Bank of America announced a special mortgage program only for Blacks and Hispanics. The program packages a set of give aways and waivers including zero down payment, zero closing cost, no credit score, alternative appraisal, no mortgage insurance premiums, and low or no title insurance. Asians, Whites, Native Americans, and others need not apply.
HUD tried this game on other matters during the Obama years. Picking winners among races has been smacked down by the U.S. Supreme Court.
The Bank of America version of the Obiden program is one example of the AFFH program forced upon market participants including lenders Fannie Mae and Freddie Mac, and Multi-Family Rental programs.
Take one guess who will be paying for these policies. [Exactly:] Homeowners and renters who are not in the favored races will pay for and subsidize the discounts, waivers, and giveaways to the favored races.
Whites and Asians will pay more for mortgage insurance, loan level pricing adjustments, and title insurance.
Whites and Asians will have minimum credit scores and capped ratios for Debt to Income and Loan to Value while Blacks and Hispanics will not.
In these ways, the Special Purpose Credit Programs, regardless of what HUD Counsel claims, will also violate the Equal Credit Opportunity Act and the GSE Charters. The Obiden Regime has also ignored State laws.
Free from any media or Congressional oversight, the [Obiden communists] also targeted down payments, credit scores, appraisals, fees, mortgage insurance, title insurance, and debt to income ratios because they claim those are all racist too. Oh, and so is climate change they say.
Never mind the hundreds of billions of taxpayer money thrown at these same wrongly perceived inequities with the only meaningful changes in minority homeownership rates those gains from the Trump years because of successful immigration, trade, tax, and housing policies and the only harm from the high defaults from Congressional malpractice and the failures of the Obama years.
The Obiden communists are setting us up for a repeat of the policy failures and industry excesses of 2004-2011 that hammered minority homeowners.
This time woke and racist schemes will have a larger adverse impact on minorities.
Now is exactly the wrong time to be easing underwriting standards as home prices peaked earlier this year and are expected by Moody’s to see a 20% drop in the next two years absent some sanity in fiscal and economic policy—unless your goal is to maximize foreclosures and make Blackrock rich again.
Remember, as LAMP has long posted: Balloons. We must continue to await the launch of the balloons.
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Author: Nathanael Greene
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