Ponderable
- Thread starter Bruddah IZ
- Start date
Sheriff Joe
DA
Husker is having a meltdown.
Sheriff Joe
DA
Looks like the Klan is at it again.
Bruddah IZ
DA
https://fee.org/articles/fha-mortgage-rate-cuts-are-subsidies-not-tax-relief/
Last Friday after the inauguration, the Trump Administration announced that it was canceling a planned 0.25% cut in Federal Housing Administration (FHA) mortgage insurance premiums. The cut had been announced by the Obama Administration less than two weeks earlier, but had yet to be implemented. Thus, Trump’s action was a return to the status quo that existed at the start of 2017.
Bruddah IZ
DA
FHA mortgage insurance is not given away for free. Borrowers pay for the FHA mortgage insurance as part of their monthly mortgage payments, as a percentage of their overall loan.
FHA insured loans expand the pool of potential borrowers and homeowners, in line with the FHA’s mission. At least on the surface, this directly helps those borrowers. To the extent that FHA insurance allows borrowers to access better financing terms than the private sector would offer, the program acts as a subsidy to those borrowers.
https://fee.org/articles/fha-mortgage-rate-cuts-are-subsidies-not-tax-relief/
FHA insured loans expand the pool of potential borrowers and homeowners, in line with the FHA’s mission. At least on the surface, this directly helps those borrowers. To the extent that FHA insurance allows borrowers to access better financing terms than the private sector would offer, the program acts as a subsidy to those borrowers.
https://fee.org/articles/fha-mortgage-rate-cuts-are-subsidies-not-tax-relief/
Bruddah IZ
DA
The premiums paid to the FHA, by the borrower, offset the value of the subsidy. All things equal, if the insurance premiums are higher, the net value of the subsidy is lower and vice versa. Thus, Obama’s decision would have increased the value of the subsidy and Trump’s decision canceled it.
But the American taxpayer is on the hook if the system fails. If the FHA has to pay out more in default claims than it has received from insurance premiums–because it has charged premiums that are too low–then taxpayers are left with the bill.
A taxpayer bailout is not just a theoretical outcome. The FHA received a bailout to the tune of $1.7 billion as recently as 2013.
But the American taxpayer is on the hook if the system fails. If the FHA has to pay out more in default claims than it has received from insurance premiums–because it has charged premiums that are too low–then taxpayers are left with the bill.
A taxpayer bailout is not just a theoretical outcome. The FHA received a bailout to the tune of $1.7 billion as recently as 2013.
Bruddah IZ
DA
Who Benefits?
The overall impact on borrowers is up for debate, but the FHA program offers clear benefits to interest groups. Reducing the mortgage fee premium would have reduced the size of required monthly mortgage payments, further expanding the pool of borrowers. More borrowers would be able to buy a house, and borrowers who could already afford a house could buy a larger one.
Banks and mortgage lenders benefit from access to an expanded pool of borrowers that comes backed with a government loan guarantee. Real estate professionals and the homebuilding industry would also enjoy the opportunity to sell more and bigger houses to more people. These groups would prefer FHA premiums be as low as possible to maximize their potential customer base.
The overall impact on borrowers is up for debate, but the FHA program offers clear benefits to interest groups. Reducing the mortgage fee premium would have reduced the size of required monthly mortgage payments, further expanding the pool of borrowers. More borrowers would be able to buy a house, and borrowers who could already afford a house could buy a larger one.
Banks and mortgage lenders benefit from access to an expanded pool of borrowers that comes backed with a government loan guarantee. Real estate professionals and the homebuilding industry would also enjoy the opportunity to sell more and bigger houses to more people. These groups would prefer FHA premiums be as low as possible to maximize their potential customer base.
Bruddah IZ
DA
As noted above, the taxpayer is ultimately on the line if the FHA fails. Lower premiums put the FHA in a less stable financial position, which makes a future bailout more likely. Trump’s decision to cancel the premium reduction reduces the likelihood that we will experience another housing bubble bust. Taxpayers have benefited from Trump’s decision to cancel the premium reduction.
Obviously, the best scenario for the taxpayer would be to eliminate the possibility of a bailout by getting rid of the FHA in the first place. The next best thing is having the FHA run in a financially conservative way.
Obviously, the best scenario for the taxpayer would be to eliminate the possibility of a bailout by getting rid of the FHA in the first place. The next best thing is having the FHA run in a financially conservative way.
Hüsker Dü
DA
In a new book, to be published next week, the woman at the center of the story Carol Bryant confessed 10 years ago that she had fabricated the most sensational part of her testimony.
“Nothing that boy did could ever justify what happened to him,” Bryant told author Timothy
Till’s murder, and the acquittal of his killers by an all-white jury, helped to spur the Civil Rights movement.
http://wgntv.com/2017/01/27/emmett-till-accuser-says-she-lied/
“Nothing that boy did could ever justify what happened to him,” Bryant told author Timothy
Till’s murder, and the acquittal of his killers by an all-white jury, helped to spur the Civil Rights movement.
http://wgntv.com/2017/01/27/emmett-till-accuser-says-she-lied/
Thought this was an interesting read. Okay... so we're going to get rid of Obamacare. And republican's going to replace it with what? Seems little appetite in congress to just go back to what we had before. Probably because the congressmen are afraid of how the 2018 political ads, talking about people losing their healthcare, with play with the blue collar paycheck-to-paycheck crowd.
Which is of course to say folks are now starting to go back and re-examine some of the old republican ideas on healthcare- that republican's had offered as alternatives plans to Obamacare. Maybe there is a way to provide the same services, for less money? Anyway if you're into the policy, this brings up some interesting questions.
Which is of course to say folks are now starting to go back and re-examine some of the old republican ideas on healthcare- that republican's had offered as alternatives plans to Obamacare. Maybe there is a way to provide the same services, for less money? Anyway if you're into the policy, this brings up some interesting questions.
Wez
DA
The GOP is fucked when it comes to "fixing" our healthcare system. They are beholden to their pro-business, small Gov. mantra's, so will almost certainly leave the heavy lifting to the health and drug companies, which means no fix on out of control costs, which means nothing can be fixed. They have no options that will leave them better off, unless they actually grow some balls and severely hurt health industry profits.
Bruddah IZ
DA
People want health insurance to be more than just insurance.............that's a big part of the problem.
http://faculty.chicagobooth.edu/john.cochrane/research/papers/after_aca.pdf
Bruddah IZ
DA
If the Republican's plan is to put the drug companies in charge of the nations healthcare... then they are going to own that next election.
If there's anything we learned from watching this last election- that despite the billion dollar machine, the slick attack ads and full weight of the democratic machine; none of that matters to folks who are genuinely worried about their future. And for better or worse, a lot of the same voters who helped Trump win the election are the most vulnerable financially. And will be the first to feel the effects of things like not having access to health insurance.
In a democracy it's the people who are in charge... or you batting for team Putin now? You know, a believer that "the people" are stupid, and need a good strong armed leader to protect them from themselves.
Bruddah IZ
DA
You're not suggesting that we borrowed the individual ACA mandate from Putin are you?
Bruddah IZ
DA
Physicians density:
2.45 physicians/1,000 population (2011)
Hospital bed density:
2.9 beds/1,000 population (2011)
Obesity - adult prevalence rate:
35% (2014)
Anybody wonder what affect the above might have on premiums? Yes they are for the U.S.
2.45 physicians/1,000 population (2011)
Hospital bed density:
2.9 beds/1,000 population (2011)
Obesity - adult prevalence rate:
35% (2014)
Anybody wonder what affect the above might have on premiums? Yes they are for the U.S.
Sheriff Joe
DA
Sounds just like Jon Gruber.
I'm just marveling at the title of the article you posted. The problem with governing is the people!! lol
Makes you wonder about the guy who wrote it? I bet he's got one of those shirtless posters of Putin hanging on his wall.