There is nothing I love more than to help a first-time homebuyer finalize a deal on a new home. As a Realtor, it’s the best part of my job. Ronald Reagan called home ownership an “essential part of the American dream.” I believe in the sentiment. That’s why I’ve helped hundreds of Missourians find a place to call home throughout my career.
I don’t believe in punishing those who do the right thing.
Starting May 1st, the Biden Administration’s Federal Housing Finance Agency will force folks with good credit to pick up the tab for those with high-risk mortgages. Experts say this risk transfer will reduce the purchasing power of homebuyers with good credit by about $40 a month on a $400,000 house. Not only is this a move to pander to the voters that Biden believes he needs to win re-election. It is also a fundamental misunderstanding of why risk is assigned to borrowing.
This flawed policy also exposes another fundamental issue with the core beliefs of those on the left. Democrats seek out people who have been successful and look for ways to punish them. Traditionally, their target was business owners who saw success, hired employees and expanded their operations. It was also the farm families who had land passed down through generations. Now they are targeting the American family that responsibly paid their bills on time and made prudent decisions.
This destructive decision by Biden’s Administration reminds me of the 2008 financial crisis. Our government encouraged lenders to give loans to people who couldn’t afford them. When these folks couldn’t pay their mortgage, our economy collapsed under the pressure of so many high-risk mortgages being foreclosed on. We can see that history repeats itself.
Let’s also remember all the programs set up to support Americans looking to become homeowners. Whether that be an FHA loan, VA loan, USDA loan, and many others. We support home ownership in this country, and we should. These policies are good for families and good for our economy.
Here is the bottom line, this is another reckless and misguided Biden policy incompatible with the American Dream. All families should have an equal opportunity to pursue home ownership. Still, that opportunity should not come at the expense of other families who have saved for years, used their credit wisely, and paid their bills on time. Those families should reap the benefits of their efforts.
Candidate for State Senate
