aside President Reneging On Promises With Increase In Mortgage Premiums

Image result for photo of trump playing golf
Another broken promise? He said he would be working, not playing golf as criticism of President Obama.

Here we go again with another broken promise by our republican US President Donald Trump to his loyal supporters who voted for him, believing our president’s pledge that he would take no action to harm them. He had their backs.

Within a couple of weeks after he stepped into the White House, our president has rolled back FDA regulations in order to speed up the introduction of new drugs into the market without proof of efficacy instead of empowering Medicare to negotiate prices of pharmaceutical products; the Dodd-Frank rules designed to protect average Americans from the same vulnerable position they were in, prior to the 2008 financial meltdown; and the financial advisor’s fiduciary rule established to protect people from being poorly advised regarding their retirement savings.

Image result for photos ben carson as head of hud
Ben Carson

But wait, he is not finished. He is also planning to eliminate a plan to reduce his supporters’ mortgage premiums.

Here is the rest of the story…

On 1/20/17 Sarah N. Lynch of Reuters penned the following article, “As Trump takes over, U.S. ends plan to cut mortgage premiums.” (Additional reporting by Daniel Burns in New York and Richard Cowan in Washington; Editing by Kevin Drawbaugh and Daniel Wallis)

The Trump administration, hours after taking office on Friday, suspended a plan to cut mortgage insurance premiums on federally insured home loans that the U.S. government had estimated would save eligible homeowners an average of $500 a year.

The move immediately drew fire from Democrats, and it offered an early example of the potential conflicts ahead as Republican President Donald Trump rolls back measures put in place by his Democratic predecessor, Barack Obama.cartoon-trumpswampariailw

“In one of his first acts as president, President Trump made it harder for Americans to afford a mortgage,” U.S. Senate Minority Leader Chuck Schumer said in a statement.”

“Actions speak louder than words,” Schumer said. “One hour after talking about helping working people and ending the cabal in Washington that hurts people, he signs a regulation that makes it more expensive for new homeowners to buy mortgages.” Trump officials did not reply to emailed questions.”

“The reduction in Federal Housing Administration (FHA)mortgage insurance premiums was announced just last week by the Obama administration and had been due to take effect on Jan. 27.”Image result for draining the swamp cartoon

“The reduction “has been suspended indefinitely,” pending further research, the Department of Housing and Urban Development (HUD) said in a letter to participants in FHA loan programs. The letter was signed by Deputy Assistant Secretary for Housing Genger Charles.”

“When asked for more information, a HUD spokesman referred back to the letter, which said that “more analysis and research are deemed necessary.”

“Obama’s HUD Secretary Julian Castro said on Jan. 9 that the premiums would be cut to share with U.S. homeowners recent gains in FHA’s Mutual Mortgage Insurance Fund, which has recovered from the financial crisis almost a decade ago.”Image result for draining the swamp cartoon

“FHA, part of HUD, offers mortgage insurance, often to first-time home buyers and those on low incomes. The insurance protects lenders in case of defaults. HUD said cutting the premiums would help about 1 million households.”

“HUD’s decision to lower the premiums by a quarter-percentage point earlier this month divided lawmakers, with Republicans accusing the Obama administration of putting taxpayers at risk of a potential bailout of the FHA.”

“Just three years ago the taxpayers had to spend $1.7 billion to bail out the FHA,” House of Representatives Financial Services Committee Chairman Jeb Hensarling said on Jan. 9 when the premium cut was announced.

“Playing politics with the FHA through cynical, surprise 11th hour rule changes is irresponsible,” Hensarling said.”Image result for draining the swamp cartoon

“HUD had projected that the reduced premiums would have saved FHA-insured homeowners an average of $500 in 2017.”

“Ben Carson, Trump’s nominee to head HUD, told Congress last week during a hearing on his nomination that the incoming administration planned to examine the decision closely.”

“Shares of mortgage insurers MGIC and Radian closed up less than 1 percent on the New York Stock Exchange.”

4 comments

  1. Gronda, as you note above, this was one of his first acts within hours of his inaugural speech to take care of hard working Americans. Yet, far too many folks have no idea he did this. The one on fiduciaries worries me most, as it was put in place after much study and feedback. Eliminating that change means many brokers, who do not consider themselves fiduciaries, are not obligated to act in your best interests. A broker is paid by transactions – the more buy/ sells you do, the more money he/she makes. Yet, buying and holding may be the better strategy. Keith

    • Dear Keith,

      You are so right.

      This just shows that his caring about the average guy, is full of baloney. Too many folks will not be prepared for retirement in any way and this will end up costing American taxpayers.

      Ciao, Gronda

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