Goose wrote:

That's what I figured. You read nothing, and you have nothing to contribute on the subject.

 
Ok.  You can't admit when you're wrong.  You really are a lot like our current President.  Maybe that's why you have such an obsession with him? Bye goose.

And now we pass to the personal attack phase of a 'The Man' posting.
You made the claim that mortgage insurance caused the housing bubble.
The onus ( that means responsibility) to offer proof is yours.

You have produced none, and are apparently unable to cite any sources.
Frustrated by your own  ineptitude, you resort to ad hominem, and then announce your retreat.

Game. Set. Match.

TheLagerLad wrote:

So is it bad optics for a new administration to raise mortgage payments slightly for those getting government backed loans? Yeah. Is it outrage worthy? Not as much as potentially dismantling the ACA through executive action.

Actually, payments for people are not going to rise.  This action by Trump is to override the reduction Obama announced earlier this week.  

https://www.washingtonpost.com/news/where-we-live/wp/2017/01/20/trump-takes-away-fha-mortgage-insurance-premium-cut-not-long-after-being-sworn-into-office/?utm_term=.7dbdf5b2417a

From the WP article:

In one of the first undertakings of his administration, President Trump issued an administrative order to suspend one of the Obama administration’s final acts.

The move undid the quarter-point decrease in the FHA mortgage insurance premium that was announced earlier in the week by outgoing U.S. Department of Housing and Urban Development Secretary Julian Castro. For most borrowers, it would have been a reduction to 0.60 percent from 0.85 percent.

The reduction was scheduled to take effect on new FHA loans insured on or after Jan. 27. A buyer who this week went under contract to buy a house using an FHA loan may now find that his monthly payment has gone up. It was estimated the reduction would have saved borrowers about $500 per year.
 

tennyson wrote:

Brady Bunch wrote:

TheLagerLad wrote:

So is it bad optics for a new administration to raise mortgage payments slightly for those getting government backed loans? Yeah. Is it outrage worthy? Not as much as potentially dismantling the ACA through executive action.

Actually, payments for people are not going to rise.  This action by Trump is to override the reduction Obama announced earlier this week.  

https://www.washingtonpost.com/news/where-we-live/wp/2017/01/20/trump-takes-away-fha-mortgage-insurance-premium-cut-not-long-after-being-sworn-into-office/?utm_term=.7dbdf5b2417a

From the WP article:

In one of the first undertakings of his administration, President Trump issued an administrative order to suspend one of the Obama administration’s final acts.

The move undid the quarter-point decrease in the FHA mortgage insurance premium that was announced earlier in the week by outgoing U.S. Department of Housing and Urban Development Secretary Julian Castro. For most borrowers, it would have been a reduction to 0.60 percent from 0.85 percent.

The reduction was scheduled to take effect on new FHA loans insured on or after Jan. 27. A buyer who this week went under contract to buy a house using an FHA loan may now find that his monthly payment has gone up. It was estimated the reduction would have saved borrowers about $500 per year.
 

Nevertheless that was $40+ dollars per month they could spend on things other than their mortgage. For many new homeowners that would have been a good thing. 
 

Right, but on the flip side, that $40 a month in PMI goes towards keeping the FHA fiscally sound (maybe) for future homebuyers needing a government backed loan.

I honestly don't know what to make of this. 

opendoug wrote:

According to the Consumer Financial Protection Bureau, "Typically, borrowers making a down payment of less than 20 percent of the purchase price of the home will need to pay for mortgage insurance." If that is correct, purchasing mortgage insurance isn't so much a reflection of the homebuyer not being able to afford the monthly mortgage payment. My fiancée and I have nowhere near 20% to put down on a home but our ability to make monthly payments is outstanding, so I am sure that within the next year or two we will be in this boat. This directive by the Trump administration will simply make it more difficult to do so - not impossible, as we're capable of making up the difference, but for others it could pose more of an issue. I don't see any connection between mortgage insurance and the housing crisis.

Good post, Doug.
I'm much older than you, but I was once in the same boat. When we bought our first house, we paid mortgage insurance until we had acquired 20% equity in the property. We weren't deadbeats anymore than were  millions of other Americans. We were hard working people of limited means, just like yourself.

Hey, remember two things. 1. Mortgage insurance doesn't protect you. It protects the lender. And 2. When you get to 20% equity you have the right to stop having mortgage insurance. But you gotta tell your lender to remove it.

Last edited by Goose (1/21/2017 11:42 pm)