Let’s say Joe Average works at the movie theater snack counter, has a 2nd job at the gas station and makes $40k per year. He bought a home undocumented for the new FHA-max amount: $625,500
This is way above the 31% mortgage-to-income requirement. Some lender opts to take a 50%+ loss and let Joe keep the house for a $300k refinanced loan. Basically, Joe got a $625k house for $300k, plus he doesn’t get dinged on his credit so he can live to make other financial mistakes. Credit cards here we come!
All this while responsible savers waited for market rationality.
I think this bill is teaching Americans to be irresponsible.
