As President Donald Trump sat signing paperwork with congressional leaders Friday afternoon, his administration sprang into a strangely specific action: They made it harder for Americans to afford their own homes. And the change specifically will impact lending to the poor.
Just 11 days after the Department of Housing and Urban Development (HUD) had announced a cut in fee rates for mortgages, Trump’s team revoked the price cut. The small but significant reduction in mortgage insurance premiums had been set to go into effect January 27, but is now “suspended indefinitely,” per an administration letter.
Analysts heralded the fee cut, a policy championed by Democrats, as a significant savings—around $500 per year on a typical loan. It would affect millions of homeowners whose loans are insured through the Federal Housing Administration. It also would have helped prospective home buyers with lower credit scores borrow by bringing the federal version of mortgage insurance down to a more competitive price with private offerings.
Letting people with low credit scores buy homes using “liar loans” was one of the things that caused the crash in 2008.
There are currently a large number of car loans at risk because they were given to people with bad credit.
This misleading banks as well as car dealers are approving the loans. Not the pepole asking. Not lair loans, poor business practices.