The president is making it worse for home buyers
Editor:
Americans deserve an explanation regarding the new rule changes the Biden administration will impose on home buyers.
On May 1, 2023, President Biden implemented a new policy for Fannie Mae and Freddie Mac, creating a situation where the good credit risk borrower will subsidize the poor credit risk borrower. Yes, you are reading that correctly.
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSE). It is worth noting that the last time a U.S. president attempted to force changes on GSEs to increase lending to riskier home buyers, it created the biggest mortgage crisis the U.S. has ever seen.
The 2008 housing market crisis involved many factors, and a prime driver of the crash was predatory lending fueled by lower credit standards. We are at significant risk of repeating history; in 2008, GSEs directed lenders to lower their credit standards.
The need and desire to create more opportunities for working families in the housing market remain, and the changes in 2008 did partially achieve that goal. The unintended consequence was a tidal wave of foreclosures that flooded our real estate markets and wreaked havoc on the lives of many working families.
The real estate market has learned many lessons from the 2008 crisis, and better practices exist to protect working families from predatory lending. Home ownership is a piece of the American dream and, as a broker, I am passionate about helping families reach that goal.
We cannot allow the industry to take a step back by putting families at risk again of carrying debt that they cannot afford in the long term. A good credit score is one factor of many that trusted lenders utilize to ensure working families can achieve the American dream.
These changes will not break the bank for most home buyers with good credit. What troubles me is thinking of my 21-year-old child, who has shown responsibility and prudence in a short time, thus obtaining a high credit score.
As these young people from all walks of life begin their journey, we tell them they must work harder so someone else can work a little less and still realize the same American dream.
With Biden’s changes, this 21 year old must work an extra hour weekly so that a slacker can take that hour off. Wow. As they say, “You can’t make this stuff up.”
Alonzo Baldonado
Former New Mexico state representative, licensed real estate broker
Los Lunas
Thank you, Kandy
Editor:
It is with great sadness when I read Kandy Cordova, our former state representative and county clerk, passed away last month.
Mrs. Cordova was one of the most authentic people I have ever met, and she treated everyone she met with great respect. There will never be anyone like Kandy Cordova.
She gave of her time, of her experience and her heart. I will miss her immensely.
I only wish I had the opportunity to thank her personally for what she has done for our community. She will be missed greatly.
Charles Garcia
Los Lunas
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April 18, 2024
