An Open Letter to Senator Elizabeth Warren
Donald J Trump was inaugurated today as America's 45th President, whether you like it or not. As a disclaimer, I'll say I did not vote for Trump, would have preferred another candidate (I also wasn't "with her") and thought that the choices this year were less than stellar. I also sit here writing this after having just read about an riot where a bunch of assholes will be out breaking things and lighting them on fire anti-Trump rally that's scheduled near my home tonight.
I saw a friend who doesn't work in the housing industry, has no home buying experience, and knows nothing about the FHA loan program share a post that Senator Elizabeth Warren wrote (or allowed someone to post on her behalf) to her facebook page. What irked me is not that my friend shared it, but that an elected official is so quick to put out materially false information. Here is Ms Warren's post:
I replied to her post directly on her facebook page, but wanted to share my response here for 2 reasons - for one, it already received positive feedback on her page and it may be removed, and two, because it's important that regardless of how we feel about elected official on either side, it's extremely important to take them to task and uphold their responsibility to the people. We don't elect them to divide. We don't elect them to deceive. We certainly don't elect them to create and promote "fake news" simply to make their political opponents look bad. This is my response to Ms Warren:
"Where were you, Ms Warren, when HUD made FHA mortgage insurance permanent for the life of an FHA loan, regardless of a borrowers equity position? I didn't hear you complain when that unfair change was implemented under Obamas administration --- harming in a very real way and financially exploiting low-moderate income borrowers. Where were you then?
Where were you when insurance premiums on the FHA product more than doubled under the Obama administration following the collapse of the housing market? You state this act DIRECTLY costs 40,000 people the opportunity at buying a home, simply leaving premiums where they've been (at .85% for most products) ---- Where were you when they rose from .55% to 1.35% for most borrowers? If leaving policy in place harms 40,000 people, how many people were harmed in the past 8 years by increases in premiums? You were silent then, do yourself and all of us a favor and keep silent now rather than spewing biased, partisan views which aren't even close to reality.
You know what else could have completely avoided this situation? If HUD made the announced changes a few weeks ago 'effective immediately', rather than conveniently putting them off til 1/27 --- care to explain the rationale behind that?
Finally ---- you care so much about "responsible" lending and protecting borrowers --- care to discuss the fact that this change is likely to be the difference of $25-50/month for the vast majority of home buyers ---- if qualifying is really based on such a small margin, should those folks really be buying anyway if they're that strapped for cash (remember, FHA allows for higher debt/income ratios than conventional loans, so these "40,000 home buyers who can't get a home now" already can't even qualify for conventional financing)???
Get off your high horse and stop spewing information to your followers when 1) you're wrong, 2) you're only working to further divide an already divided country, and 3) you're beyond hypocritical if you can say you care about consumers, but are disappointed that cash strapped home buyers, thanks to this move, can't max out what they're buying, leaving them house-poor and a broken water heater or roof leak away from foreclosure"