Replies to post #657888 on Fannie Mae-No Politics (FNMA)

[RumplePigSkin]

I say Bang - no Big Bang ...

I'm curious if this is why the Capital Retention amount that Mnuchin/Calabria allowed is exactly the amount needed to pay off the JPS at Par.

Talk about backing into narratives ... So you’re worth $45 billion now, not $30 billion, or a discount at $20 billion.

Riggghhhttt ... it’s cause of those contract claims ... I would like to see more of ur touchdown dances ... humorous!

Tminus 3 days ... Bang!

[stockprofitter]

WRONG

Important Proposals via Biden

The most important specific changes proposed in Biden's housing policy are, 1) a $15,000 first-time home buyer tax credit, 2) a large increase in funding for the Section 8 subsidized housing voucher program, and 3) tying federal dollars to local communities increasing their zoning density. Let's look at each and then end with a laundry list of the new and expanded housing programs in Biden's housing policy plan.

1) $15,000 First Down Payment Tax Credit

The First Down Payment Tax Credit would be a new refundable, advanceable tax credit of up to $15,000 for first-time home buyers. You would get the money upfront so you could use it as a down payment when you buy your first house. You wouldn’t have to wait until the following year to get the money like with normal tax credits.

These subsidies, unfortunately, eventually make homes more expensive. The first people using the program do well but the subsidy lets buyers bid up home prices and they often do over time. People who don't already own homes are worse off because they have to pay more to buy their first home but current homeowners, of course, are wealthier after home prices increase. Wealth inequality increases.

A similar first-time buyer program existed from 2009 to 2010 but the credit was only $8,000 instead of the $15,000 proposed by Biden. The smaller $8,000 tax credit had a big impact on home prices. Prices nationally had fallen 20% the previous two years but once the tax credit went into effect home sales increased and house prices stopped falling. In some metropolitan areas, house prices actually increased after the tax credit started but after the tax credit ended in 2010, prices started to fall again in those metros. Even though it was much smaller than the proposed Biden plan, the 2009 $8,000 tax credit had a huge impact on house prices.

It’s seems obvious that Biden’s $15,000 First Down Payment Tax Credit proposal would eventually jack up house prices in many markets and would hurt first-time home buyers who buy after the $15,000 subsidy is capitalized into higher house prices, especially where the subsidy causes home prices to increase more than the subsidy.

BOOM!

[Donotunderstand]

show citation with numbers ---- rather than political; bias

we simply do not know this

and if those - solid programs grow - we do not know if the positive wonderful quid pro quo might be the simple AND maybe HUGE change below

as F and F keep profit - up to unlimited number or 4x current cap

this time - for first time - when F and F keep money there will be NO - NONE - increase in the LT which can make the holding of money a A but owed to B---- meaningless as under Calabria Mnuchin DJT


* - noted for fairness if GOV in a trade or consent or ? says all of LT is paid back --- then we were not damaged by its quiet hidden growth every time money stayed with F and F

for those who do not understand

F and F keep profit - the LT (the amount legally obligated to pay back under Calabria SM and DJT goes up the same exact amount --- and at some math is another 10%)

mirrors and smoke --- again unless the entirety - including this 50M growth is forgiven --- which I want

[bradford86]

i think you know better than thinking that the capital will be used to pay jps.

there is no way jps get any cash payments out of this... unless the current administration doesn't finish executing their spspa as we both expect them to which will enable fannie and freddie to raise capital this year.