(RightIsRight.co) – In an unashamed attempt to boost his abysmal approval ratings ahead of this year’s election, Joe Biden is using executive powers to benefit his base so he can get them to vote Democrat this fall.
Specifically, Biden has been criticized for enacting policies that critics argue have skyrocketed mortgage rates.
He is exploring measures to allegedly ease the financial burden on prospective homeowners by slashing loan-related fees and potentially bypassing title insurance for certain refinancing transactions.
This proposition has stirred controversy within the mortgage sector and has been met with strong opposition from title insurance providers who denounce Biden’s strategy as politically motivated.
Amid the backdrop of rising rent and mortgage rates, lowering housing costs has become a cornerstone of Biden’s campaign as he seeks reelection. Economists trace the inflation surge back to major governmental expenditures extended under Biden’s tenure.
In his State of the Union address on March 7 Biden unveiled a pilot initiative aimed at abolishing title insurance requirements for select federally backed mortgage refinancings that would potentially save over $1,000 for some homeowners.
Additionally Biden proposed handing out $10,000 tax credits for certain homeowners, but the plan’s prospects are unlikely since carrying it out required congressional approval.
Title insurance is key to home purchasing since it ensures a property is free from previous financial burdens. Despite its purpose, Biden administration officials want to slash it by pointing to the low payout ratio compared to other insurance forms.
However Biden’s move took the title insurance industry by surprise and prompted concerns about its implications for low-income homeowners and the broader market. Critics within the industry defend the importance of title insurance by emphasizing its unique one-time payment structure and the thorough risk assessment it provides.
The administration’s plan involves leveraging the Federal National Mortgage Association, also known as Fannie Mae, to selectively process refinancing loans deemed low-risk. However this approach raises alarms over potential risks not covered by such a system, including new liens or unpaid taxes.
The prospect of Fannie Mae stepping into a quasi-insurance role without the traditional expertise of title companies has sparked fears of increased risk exposure for lenders and taxpayers alike.
Copyright 2024, RightIsRight.co
