Another city tried to make a regulation about home loans a few years back, I think it was in the South and it was something to do with not allowing banks to charge PMI or something. The result was three months where not a single loan was approved and national lenders just refused to loan money to people in that area. The locality gave up after they realized they were doing more harm than good and they can’t legislate private companies into losing money.
Philly will cause the same thing to happen, no new loans will be initiated because the lenders will have no options if they arent paid back, they will just blacklist Philly. Those who are only mildly struggling, making their payments but needing to refi out of a toxic loan will be turned down because of their wacky city council, I give it 90 days, tops.
This is not the first time a government entity had tried to deny the invisible hand of economics, it’s never worked before and it wont work now.
