Monday, May 06, 2019

Show-Me Housing Credit Redux

As housing troubles now defy demographics, here's a look at controversial plan to help residents and developers in Missouri. Take a look:

Missouri moving closer to restarting low-income housing tax credit program

JEFFERSON CITY - Missouri lawmakers could be poised to send Gov. Mike Parson a plan to restart the state's low-income housing tax credit program. The proposal would place a cap on the amount of credits issued at 72.5 percent of the federal level - or about $123 million for the coming year.

5 comments:

Anonymous said...

No no no no no giant McMansions for everyone!

Anonymous said...

isn't this what led to the housing crash? Poor people given houses they can't afford...then property tax gets jacked up and they go completely underwater

Anonymous said...

^No, people (who actually made decent livings) buying houses (ie McMansions) on teaser adjustable rate mortgages (some on interest only loans). When the time to refinance arrives, the house value is underwater and no one will refinance. The teaser rate expires and the rate goes up a lot. Hence, homeowners can't afford the new payment. These people weren't poor. They were buying well above their means and the lack of regulations allowed them to do that. Regulations that the current admin is rolling back. We'd hate for some Wall Street execs or Bankers not to get their bonuses. A lot of these buyers flat out walked away from mortgages the house value was so in the toilet. This is high level explanation and there were some other things at work, like mortgage backed securities, that led to the crash.

The people this article refers to are probably the 'animals' that Chuck is always bitching about who will live in modest homes.

Anonymous said...

^^^It all started with Clinton era pressure through HUD to increase the number of non traditional, poorly underwritten (read:risky) home loans to people on the lower rungs of the economic ladder, who not only were not able to come up with a down payment but could not afford the regular mortgage payments. When Fannie and Freddie made it clear that they would buy even loans with a high risk of default on the secondary market, all hell broke loose. Of course mortgage brokers will generate massive numbers of risky loans if they have quasi government agencies who are stupid enough to purchase them. It was Stupid Uncle Sam who got us into that mess and Stupid Uncle Sam who is leading us down the same path all over again.

Anonymous said...

^ Good Lord, you haven't the slightest clue what you're talking about. The Federal Reserve was driving the rates at the time and lowered them in order to drive growth. Many subprime borrowers took advantage of this. It's obvious you're some sort of Trumptard, pulling the Clinton card and all but learn a little about finance before you talk next time.

And before you pull the "Clinton controlled the Fed" card, under normal administrations (ie not Trumptard), government entities operate with input from POTUS. So the POTUS appoints capable people and lets them do their job without input. Opposite of our current POTUS who likes to weigh in on everything under the sun. Also, this all began in the early 2000's, the majority under the Bush administration.