Armstrong Economics Blog/Real Estate Re-Posted May 3, 2023 by Martin Armstrong
Republicans at the state level are demanding that Biden and the FHFA repeal the asinine new law that punishes Americans with high credit scores by forcing them to subsidize the mortgages of those with low credit scores. The Biden Administration has been attempting to control real estate for some time. In June 2021, Biden forced the Supreme Court to give him the power to fire Mark Calabria as the regulator of Freddie Mac and Fannie Mae. Biden’s team said they were “moving forward today to replace the current director with an appointee who reflects the administration’s values.” This was also when shareholders sued the government for the 2012 decision to pay all proceeds directly to the Treasury.
Trump was in favor of Calabria and fought to separate Freddie and Fannie from the government, but the Democrats repealed everything once Joe took over. Florida Chief Financial Officer Jimmy Patronis and 33 other Republicans at the state level are urging Biden and the FHFA to repeal this “hair-brained” policy. “This new policy … will take money away from the people who played by the rules and did things right – including millions of hardworking, middle-class Americans who built a good credit score and saved enough to make a strong down payment,” the group noted. “Incredibly, those who make down payments of 20 percent or more on their homes will pay the highest fees – one of the most backward incentives imaginable.”
Patronis and others argued that owning a home was once the American dream, and the new law will hurt middle-class families who worked and budgeted for their downpayment and credit score. “[T]he right way to solve that problem is not to use the power of the federal government to penalize hardworking, middle-class American families by confiscating their money and using it as a handout. The right way is to implement policies which will reduce inflation, cut energy costs and bring lower interest rates. Doing so will enable more families to save and improve their credit scores. Increased financial literacy efforts must also be part of the solution,” the letter also states. Lowering energy scores and inflation is not part of the Build Back Better agenda.
Providing people with loans who otherwise would not qualify is part of the plan for the Great Reset. Raising taxes on everything imaginable is also part of the agenda. The government wants to tax the middle class out of homeownership, force the working class to default on their mortgages, and move everyone into government-provided smart cities. The hatred toward government is brewing and will soon bubble over.