Biden’s New Homebuying Rule Should Be Criminal
Andy Snyder|April 24, 2023
What’s the point of working hard and getting rich… if the government just takes your money and gives it away?
That’s the latest question on the minds of Americans making one of life’s largest financial commitments.
We’ve already written – to great controversy – about California’s asinine plan to prop up its government-destroyed housing market. Now the same screw-the-rich mentality is erupting at the federal level.
The housing market – nay, the millions of hard-working Americans who make up the housing market – will suffer immensely because of it.
Starting just days from now, the Biden administration will enact new rules that punish folks for their hard work and financial do-gooding.
The new rules, which go into effect May 1, penalize folks with a credit score of 680 or above. These folks, who followed the rules and did what they were supposed to do, will now have to help pay for those who didn’t.
New and refinanced mortgages will be more expensive because they’re being used to subsidize loans for folks who can’t afford a down payment or higher rates. On average, it’ll work out to about $40 per month. But depending on the size of the mortgage, the borrower’s credit score and the amount of the down payment, it could be hundreds of dollars.
“It’s madness,” said one talking head on TV.
“It makes no sense,” said another.
A third said the paperwork and scrutiny it will take to comply with and enforce the new regulations make them “the equivalent of a financial colonoscopy.”
The person in charge of it all disagrees. Director of the Federal Housing Finance Agency Sandra Thompson said it’s all designed to “increase pricing support for purchase borrowers limited by income or by wealth.”
The plumber who went to work straight out of high school, learned a trade and now runs his own business is already subsidizing the angry students protesting in the streets. He’s working to pay off their student loans… with no government backstop on the loan he took out to pay for his trucks and tools.
The 40-year-old dad of two who is side-hustling for Uber to save up for his son’s braces… he’s subsidizing his neighbor’s rent at the government’s behest.
And now the newlywed couple who skipped a honeymoon in order to boost their down payment on a home will get hit every month for the next 30 years because they worked hard and somebody desperately needed to buy a few votes.
It’s backward. It’s destructive. And it’s plain stupid.
It should be criminal.
The message is clear…
Skip a few payments. Take out loans you don’t plan on paying back. Bank recklessly.
Just vote the right way… and everything will be A-OK.
We often say the government is the biggest threat to your wealth. This proves it.
It’s madness. It creates a race to the bottom, not the top.
It will end in disaster.
Andy Snyder is an American author, investor and serial entrepreneur. He cut his teeth at an esteemed financial firm with nearly $100 billion in assets under management. Andy and his ideas have been featured on Fox News, on countless radio stations, and in numerous print and online outlets. He’s been a keynote speaker and panelist at events all over the world, from four-star ballrooms to Capitol hearing rooms.