Read on Twitter
GP Warren's bill shows she doesn't understand the secondary market in subperforming and nonperforming loans.
Despite holding herself out as an expert, it's apparent she at least on this topic is not. https://twitter.com/SenWarren/status/1291519769380872195
Despite holding herself out as an expert, it's apparent she at least on this topic is not. https://twitter.com/SenWarren/status/1291519769380872195
GP Warren's American Housing and Economic Mobility Act of 2019 is full of all sorts of bad ideas that will totally screw over the FHA's ability to lend because it will reduce the agency's ability to meet its capital requirements.
But that's not what I'm on about.
But that's not what I'm on about.
GP This part:
"Each purchaser of a covered mortgage shall offer the borrower on the covered mortgage—
“(i) appropriate loss mitigation options, including affordable and sustainable loan modifications; and
“(ii) the opportunity for a short sale or a deed in lieu of foreclosure.
"Each purchaser of a covered mortgage shall offer the borrower on the covered mortgage—
“(i) appropriate loss mitigation options, including affordable and sustainable loan modifications; and
“(ii) the opportunity for a short sale or a deed in lieu of foreclosure.
GP Leaving aside clause (i), which is functionally a vague demand that the FHA and entities purchasing its loans make completely uneconomic decisions which will drive down the price of debt in the market or cause the FHA to hold nonperforming assets on its books ...
GP ... clause (ii) requires secondary market purchasers to offer delinquent borrowers an opportunity for a short sale or a deed in lieu of foreclosure.
But it doesn't require that the debt holder forgive the remainder of the borrower's debt. Not a "solution," even by prog stds.
But it doesn't require that the debt holder forgive the remainder of the borrower's debt. Not a "solution," even by prog stds.
GP The Act also requires and buyer downstream of the FHA to sell 90% of foreclosed properties to (1) deadbeat owners who couldn't afford the house in the first place, (2) sold to a local affordable housing agency which must rent at significantly less than market rates, or ...
GP ... (3) donate properties to a not for profit local agency who will sell it as affordable property.
This is incentive to create hundreds if not thousands of uneconomic NFP entities on the backs of taxpayers.
Which is, of course, the point.
This is incentive to create hundreds if not thousands of uneconomic NFP entities on the backs of taxpayers.
Which is, of course, the point.
GP And if for some reason you still thought it might be a good economic decision for you, a private investor, to buy loans ... nah, fam.
After a sealed bid, any agency (think community organizers) who entered a bid in the auction, even if they bid a penny, ...
After a sealed bid, any agency (think community organizers) who entered a bid in the auction, even if they bid a penny, ...
GP ... get to see what *everyone else bid* and then decide whether they want to beat that bid by a penny. If they do, they get it.
This will stealthily create a federal agency required at economic damage to taxpayers to become a giant landlord + real estate owned (REO) seller.
This will stealthily create a federal agency required at economic damage to taxpayers to become a giant landlord + real estate owned (REO) seller.
GP It's a very Warren way of hiding the true intent of her act: kill off a profitable private business opportunity which benefits taxpayers on the whole while enhancing/solidifying federal government's control over America's housing stock ...
GP ... and forcing a fire sale to people who can't afford the houses they'll be practically given for free.
Oh, and it'll ruin housing values in neighborhoods, cause further flight of anyone who can afford it out of many areas, + stagnate the housing market overall.
Oh, and it'll ruin housing values in neighborhoods, cause further flight of anyone who can afford it out of many areas, + stagnate the housing market overall.
GP "But 'Puter! This *helps* people! It lets them stay in their homes! Why would you support these private equity vultures kicking women and children out into the streets and definitely into a life of sex work and drug abuse? U R HURRIBLE!", progs scream.
GP To which I reply:
1. Letting people who can't afford homes stay in those homes by artificially reducing the value of that specific house and all those around them is dumb and will prevent Americans who pay their mortgages from building wealth, and ...
1. Letting people who can't afford homes stay in those homes by artificially reducing the value of that specific house and all those around them is dumb and will prevent Americans who pay their mortgages from building wealth, and ...
GP ... 2. Even vultures have a good purpose. They clean up all kinds of waste which would otherwise litter nature, rotting, getting maggoty, and causing health hazards for the ecosystem.
GP Think of private equity "vulture" funds as cleaning up the garbage which would sicken and perhaps kill America's housing market, not to mention your house's value and banks in general.
GP And think of Warren and her merry band of Progs as hunters or polluters who come in and kill off a critical portion of the ecosystem (like vultures) without a thought for the horrible consequences they are unleashing.
GP Warren's proposed Act isn't just a bad idea, it's a dangerous idea, and one for which media should call her on the carpet to answer for.
GP But media's too lazy and/or dumb to actually read the crap she presents as "lookit me, I'm helping the poors like the white savior Karen I am" gold.
Media should be ashamed. But Warren and Progs should be ashamed more.
In sum, kiss my fat, white, hairy, dadbod ass, Senator.
Media should be ashamed. But Warren and Progs should be ashamed more.
In sum, kiss my fat, white, hairy, dadbod ass, Senator.
