New Biden Rule Will Punish Responsible Spenders to Reward Bad Credit
Enjoy This Letter I Sent my Representatives
April 21, 2023
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April 21, 2023Most of the time I assume this administration is so absurd, it can’t possibly come up with anything that will really piss me off anymore.
Then I find out about sh*t like this.
“A Biden administration rule is set to take effect that will force good-credit home buyers to pay more for their mortgages to subsidize loans to higher-risk borrowers.
Experts believe that borrowers with a credit score of about 680 would pay around $40 more per month on a $400,000 mortgage under rules from the Federal Housing Finance Agency that go into effect May 1, costs that will help subsidize people with lower credit ratings also looking for a mortgage.”
I’m sorry, what?? People who do the work to maintain a good credit score are going to have to pay MORE on their mortgage so people with bad credit scores can access privileges they’ve proven they CAN’T HANDLE???
Pardon the hell out of me, but NOPE.
There is inequality to access to home ownership in the US, but punishing people who do the right thing isn’t the way to address it. People who actually, you know, are interested in HELPING people like to give individuals in need the tools to help themselves.
For example, last summer, I spent an entire afternoon with teenagers repeating, and making them repeat back to me, “Never buy anything with a credit card worth more than whatever is in your bank account RIGHT NOW.” (Or, as my mom put it to me growing up, “Never buy on a credit card anything you couldn’t write a check for,” but I’m 87% sure these kids don’t know what paper checks are.) I told them this because it was the single piece of advice I thought would have the greatest positive impact on their lives if they followed it. I told them what a credit score is, how it works, and why they’re important. I made sure they knew that credit card companies are NOT their friends: I showed them how they make money and what credit card debt actually looks like.
And all for what, now that this is happening?
If they follow my advice, spend wisely, save money, and pay off their debts, they’re going to be punished if they ever decide to buy a house. If they ignore my advice, spend frivolously, max out their credit cards, and rack up debt, they’ll be fine– someone else will pay for it.
To translate what the Biden administration is ACTUALLY saying: it’s okay to be irresponsible; Daddy Government will take care of you.
Except that Daddy Government won’t. Daddy Government can’t be reelected and maintain its power if it fulfills its promises, it just has to sound better than the other guy. Policies like this don’t lift Americans out of poverty; they encourage slovenliness, entitlement, and apathy. It’s not a kind, paternal helping hand. What these policies actually achieve is undermining people’s impetus to practice traits like patience, self-discipline, and responsibility, and without these virtues people fail to succeed. They fail to want to succeed.
And then, instead of bettering themselves and climbing the proverbial ladder, they remain people who can’t get a housing loan without the government intervening. In other words, a captive demographic for the self-styled “party of empathy.”
That’s what’s so disgusting about this policy. Not only does it punish people for responsibility, it encourages low-income people to be complacent in their own poverty. I can’t even make jokes about it because it makes me so sick.
Screw you, Biden administration.
6 Comments
People can and will find a way around it . Here is one thing that happened to me. I have been over 800 score for years. 2 years ago I missed a kohls payment.(misplaced bill). Score dropped to low 700’s. Blew my mind. I only carried a credit card balance six times in 20 years. Might be able to use this just before you buy.
People can and will find a way around it . Here is one thing that happened to me. I have been over 800 for years. 2 years ago I missed a kohls payment.(misplaced bill). Score dropped to low 700’s. Blew my mind. I only carried a credit card balance six times in 20 years. Might be able to use this just before you buy.
Financial management to the young is making minimum payments on two tapped out credit cards and applying for a third so they can go to Cabo San Lucas.
I recall the Carter years when my tax rate was 50%. My wife was a school superintendent, and I was a pilot. Work hard, work your way up the ladder, be successful and get punished for it. Nancy had a student loan; I worked and paid my way for my education. We paid off her loan way ahead of schedule. Where I come from if you borrow money, you pay that money back. As for credit cards, I have an Alaska Airlines Visa that I pay for everything with to build miles. It is basically a 3% return of my money for travel. I pay my credit card bill in full at the end of the billing period and never pay interest. But I was born in 1940 in leaner times and learned from my parents to be honorable and thrifty. We have all given our children too much.
I don’t do credit cards. They are too easy to max out at the first store I enter, which is why my wife only gives me lunch money of only small amounts of cash. I am an adult damnit and I demand she treats me with respect, she claims, the first store I go into I am going to leave everything I have on the counter to pay for what I bought. So, a man has to do what a man has to do, and I am left with no alternative but to steal the candy that the grandkids have hidden on their person when they come over.
Hear, here with swearing off credit cards! I quit doing business with Amazon because they refuse to offer payment methods other than credit cards. When I asked a customer rep about it, she tried to bite my head off! That was when I told her that I was through with them and canceling my account. I suspect that they don’t sell Dave Ramsey’s materials since he teaches his students to limit the use of credit cards or avoid them completely.
Do you want to cause a recession? Cause this is how you cause a recession.