Home ownership: For the white and rich

[Stitch]

New mortagage rules for "Qualfied Residential Mortgages" would require a 20 percent down payment and payments no more than 1/3 of income. I see the wisdom of this, but you kill the dreams of home ownership for many. But I don't see many politicians willing to trade home ownership for all for another mortgage crisis.

Other mortgages can still be offered, but banks would have restrictions on selling them off to the secondary market.

The rules don't apply to federal agencies.

http://www.msnbc.msn.com/id/43316132/ns/business-eye_on_the_economy/

 

[imjustagirl]

Huh. Guess I'd better buy this house I offered on, since I sure as **** won't be able to buy if this goes through.

 

[Mystery Meat II]

Huh. Guess I'd better buy this house I offered on, since I sure as **** won't be able to buy if this goes through.

But at least you're white! Apparently that's half the battle!

 

[Pastor]

New mortagage rules would require a 20 percent down payment and payments no more than 1/3 of income. I see the wisdom of this, but you kill the dreams of home ownership for many. But I don't see many politicians willing to trade home ownership for all for another mortgage crisis.

http://www.msnbc.msn.com/id/43316132/ns/business-eye_on_the_economy/

The more likely result will be a drop in home values to be able to reach those more affordable prices.

 

[Stitch]

80 percent of mortages written between 1997 and 2009 did not meet the standard being proposed. Who knows how many of those homebuyers would have qualified for a standard mortgage, but I'm guessing it's a substantial percentage.

As Pastor said, home prices will just have to reset and homes will have to be treated as a home instead of a short- to medium-term investment.

 

[dixiehack]

Oh, I'm halfway there ...

Seriously, we bought this house in Dec. 06, and I think we were the last couple in America to get an 80-20 mortgage. We've made every payment on time, but no way we get those terms now. In fact, two different banks that have held our mortgage went tits up.

 

[Baron Scicluna]

Twenty percent is wayyyy too much. I'd think that maybe 10 percent would be better.

You need a consistent pool of people wanting to buy houses. Otherwise, very few will be able to afford to buy, unless prices end up crashing further from lack of demand because no one can afford it.

The problem wasn't the down payment. Heck, when the first Levitown was built in Long Island in the late 40s-early 50s, veterans barely had to put anything down (depending on when they bought, it was either zero, a dollar, 58 bucks, or $100 bucks). The problem today is that people couldn't afford the payments when they were working minimum-wage jobs.

 

[cjericho]

shocked that a guy from the Mortgage Bankers Association would try to play the race card when it might hurt his business. he has to have only the purest intentions and it can't be that he's a scumbag who wants to make a quick buck and doesn't give a **** if people he knows will end up defaulting just get mortgages anyway.

 

[cjericho]

Twenty percent is wayyyy too much. I'd think that maybe 10 percent would be better.

You need a consistent pool of people wanting to buy houses. Otherwise, very few will be able to afford to buy, unless prices end up crashing further from lack of demand because no one can afford it.

The problem wasn't the down payment. Heck, when the first Levitown was built in Long Island in the late 40s-early 50s, veterans barely had to put anything down (depending on when they bought, it was either zero, a dollar, 58 bucks, or $100 bucks). The problem today is that people couldn't afford the payments when they were working minimum-wage jobs.

Baron the payment becomes less if you put more down.

 

[Freelance Hack]

Pastor,

The only thing is if home values drop for those in starter homes, then they likely won't have much of s chance to buy a larger house when the time comes.

Example, I'm in a neighborhood quickly going to ****. Bought the house for $95K 9 years ago. Now owe about $80K. House is in great shape, but my neighbor next to me decided to vacate. As did someone two doors down. I'll be lucky to get $95K for my house when/if I put it on the market. If I have to put 20% down on my next home, then I might as well stay where I am.

 

[CarltonBanks]

Wait, are you saying black people cannot afford this but white people can? That's what the title of the thread says. You are either: 1. Racist or 2. Ignorant.

 

[poindexter]

New mortagage rules would require a 20 percent down payment and payments no more than 1/3 of income. I see the wisdom of this, but you kill the dreams of home ownership for many. But I don't see many politicians willing to trade home ownership for all for another mortgage crisis.

http://www.msnbc.msn.com/id/43316132/ns/business-eye_on_the_economy/

Nice race bait in the title.

 

[cjericho]

Wait, are you saying black people cannot afford this but white people can? That's what the title of the thread says. You are either: 1. Racist or 2. Ignorant.

the title comes from a quote in the article.

 

[Ben_Hecht]

80 percent of mortages written between 1997 and 2009 did not meet the standard being proposed. Who knows how many of those homebuyers would have qualified for a standard mortgage, but I'm guessing it's a substantial percentage.

As Pastor said, home prices will just have to reset and homes will have to be treated as a home instead of a short- to medium-term investment.

I'm frankly surprised the percentage noted is that low . . .

 

[Mystery Meat II]

Wait, are you saying black people cannot afford this but white people can? That's what the title of the thread says. You are either: 1. Racist or 2. Ignorant.

the title comes from a quote in the article.

It's a racebait in the article, too.

 

[secretariat]

Wait, are you saying black people cannot afford this but white people can? That's what the title of the thread says. You are either: 1. Racist or 2. Ignorant.

the title comes from a quote in the article.

Oh no! Now you've ruined the faux outrage from the board's resident troll and fetishist.

 

[Stitch]

Wait, are you saying black people cannot afford this but white people can? That's what the title of the thread says. You are either: 1. Racist or 2. Ignorant.

the title comes from a quote in the article.

MSNBC.com used white and wealthy on the front page. Sorry for the confusion by using rich.

 

[Pastor]

Pastor,

The only thing is if home values drop for those in starter homes, then they likely won't have much of s chance to buy a larger house when the time comes.

Example, I'm in a neighborhood quickly going to ****. Bought the house for $95K 9 years ago. Now owe about $80K. House is in great shape, but my neighbor next to me decided to vacate. As did someone two doors down. I'll be lucky to get $95K for my house when/if I put it on the market. If I have to put 20% down on my next home, then I might as well stay where I am.

I agree.

All I was stating is what the bill will do, which is crash the housing market, again. It certainly screws the people that took out a mortgage and, for some reason or another, have to sell or are looking to move.

I don’t like the bill at all. I think it forces too many of those in homes now to regret that decision.

 

[printdust]

New mortagage rules for "Qualfied Residential Mortgages" would require a 20 percent down payment and payments no more than 1/3 of income. I see the wisdom of this, but you kill the dreams of home ownership for many. But I don't see many politicians willing to trade home ownership for all for another mortgage crisis.

Other mortgages can still be offered, but banks would have restrictions on selling them off to the secondary market.

The rules don't apply to federal agencies.

http://www.msnbc.msn.com/id/43316132/ns/business-eye_on_the_economy/

This is a racist statement. MSNBC is saying that blacks don't make six-figure incomes.

 

[Baron Scicluna]

Twenty percent is wayyyy too much. I'd think that maybe 10 percent would be better.

You need a consistent pool of people wanting to buy houses. Otherwise, very few will be able to afford to buy, unless prices end up crashing further from lack of demand because no one can afford it.

The problem wasn't the down payment. Heck, when the first Levitown was built in Long Island in the late 40s-early 50s, veterans barely had to put anything down (depending on when they bought, it was either zero, a dollar, 58 bucks, or $100 bucks). The problem today is that people couldn't afford the payments when they were working minimum-wage jobs.

Baron the payment becomes less if you put more down.

I'm well aware of that. A lot of people won't be able to afford to put 20 percent down.

The problem with the mortgage crisis was that you had people putting nothing, or a small percentage down, and their payments were a huge chunk of income. I can see using 33 percent as the basis of income-to-payment (with taxes and insurance included). But a lot of people won't be able to afford 20 percent.

Which is why I feel that 10 percent is fair.