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Thursday, May 23, 2024

TUCKER CARLSON: The Biden admin's new rule will punish people with high credit scores

For centuries, politicians in this country assumed that in order to win an election, you had to convince voters to vote for you. You had to make their case. That was called democracy.

But the defining strategic insight of the modern Democratic Party is they don’t really need to convince anyone of anything. What matters is demographics. To import enough people from elsewhere, people who are financially dependent on you in order to live. That’s the story of the state of California. That’s why California changed. It’s why Texas is changing, but it’s also happening at the local level all over the country. Democrats have realized that they win the vote in virtually every major city, but the suburbs remain contested and that matters because suburban voters like school boards and state legislators and, of course, members of Congress.  

So, if you want total control over the entire country, you need demographic change everywhere, including in the suburbs. This is a very obvious insight and Democrats have been on the case for quite a while. Back in 2009, the Obama administration took the county of Westchester in New York, a solidly Democratic place, to court. Why did they do that? The administration withheld tens of millions of dollars in federal funding unless Westchester pledged to build 10,000 low-income, high-density apartments in their suburbs. 


The Obama administration later implemented a rule requiring suburbs to take “affirmative steps to diversify their neighborhoods” or else they would lose federal money. When he took office, Joe Biden threw his support behind something called the Home Act. Among other things, the Home Act would allow the federal government to withhold funds from local governments if they didn’t find ways to add high rise apartments or high-density zoning to suburbs.  

Specifically, the act would have prevented local governments from enacting “ordinances that ban apartment buildings from certain residential areas or set a minimum lot size for a single-family home.” So, you can’t be safe in a leafy suburb anymore. It has to be urbanized. 

The Home Act has stalled in Congress. It has never become law. But the Biden administration didn’t give up just because democracy didn’t produce the results they wanted. They still plan to change the suburbs forever by getting rid of them. Joe Biden’s HUD secretary, Marcia Fudge, a former member of Congress, explained last year the administration was concerned that African Americans couldn’t afford homes not because they’re poor, but because home appraisers are racist. Watch.  

Biden plan will redistribute high-risk loan costs to homeowners with good credit Video

MARCIA FUDGE: What the president has said is that we have to look at everything through the lens of equity and so what we have realized is that people selling homes just as a person, as you were talking about, and even people buying homes, if they are appraisal is not correct, what we find, especially as Black people in communities of color and underserved communities, is we lose great wealth just through the appraisal process. 

Notice here the seizing of the moral high ground. Big picture, if the Biden administration cared about African Americans, they probably wouldn’t withdraw the police from America’s cities. So, they of course, they don’t care. But in point of fact, former Congresswoman Marcia Fudge, in that clip you just saw, presented no evidence whatsoever that there are White supremacist home appraisers in this country or that they are running amok. If they exist, who are they? Well, she couldn’t tell us, but instead she offered this anecdote.  

FUDGE: I live two doors from an all-White community. I live in an all-Black community. My house is larger than the house two doors for me. My lot is larger than the house, two doors for me, but my house is valued at $25,000 less than the house two doors for me. And so once we can start to address and just own up to the fact that we are continuing to discriminate and red line in our housing efforts, then I think that we can make sure that we can start to deal with the racial wealth gap. 

America is on the verge of a 'deflating home bubble': Economist Stephanie Pomboy Video

Yeah. So as the left is often telling you, an anecdote is not a study. Noticing something around you doesn’t make it universally true. You’ve proved nothing. All you have really told us is a little story. Marcia Fudge’s lived experience tells her that there is racism in home appraisals, but there’s still no data on that. There’s no evidence whatsoever. It is, at this point, completely made up, but Kamala Harris is convinced completely as she was last year.  


Kamala Harris dressed in all black holds mic during event

US Vice President Kamala Harris speaks during the Democratic National Committee Women’s Leadership Forum in Washington, DC, US, on Friday, Sept. 30, 2022. (Leigh Vogel/Abaca/Bloomberg via Getty Images)

KAMALA HARRIS: The home appraisal workforce is one of the least diverse in our nation. Less than 5% of home appraisers in America are people of color. This lack of diversity can introduce both conscious and unconscious biases that make home appraisals less accurate and less fair. Our administration will now require those who conduct appraisals for federal programs must take part in anti-bias, fair housing, and fair lending training. There are solutions. There are solutions.  

We’re just going to brainwash the home appraisers. We’re going to put them in bias training. Really? If you wanted more Black home appraisers, why wouldn’t you start a program to train them? No. The only job training program this administration has gotten behind in two and a half years is getting Black people to sell more weed in the cities. Literally. We’re legalizing weed. We’re going to make sure the weed dispensaries have African-American owners. They are not training any Black people to be home appraisers

And by the way, the premise of this is itself unproven that home appraisers are racist. Why do we think that? Again, there’s zero evidence. That a slur upon home appraisers. By the way, why do they deserve this abuse? Well, they don’t; they’re not hurting anyone. They’re accounting types. Why is the administration calling them racist? But they are, and they have been for more than a year.  

So, once again, they’re using fake allegations of racism as a pretext for a political plan and in this case, the plan is to flood the suburbs with voters they believe will support the Democratic Party. It’s super simple. They don’t deserve the moral high ground because we’re talking race around or claiming they speak on behalf of Black people. Kamala Harris is claiming to speak on behalf of Black people. Right. OK. That doesn’t mean that they’re right, but no one’s stopping them. 

So, without any vote in Congress, the Biden administration has just introduced a rule, – not a law, a rule –that will punish Americans who’ve tried to do the right thing, punish people with high credit scores. The people with high credit scores will pay higher fees on their mortgage payments to subsidize people who haven’t maintained good credit. 

So, these rules take effect on May 1st, whether you like it or not and they mean that anyone with good credit that’s defined as a score of 680 or above is going to have to pay roughly $40 a month extra on their mortgage fees than those with lower scores on home loans for around $400 grand.  


So, here’s an example. If you have a FICO score of 620, you get a 1.75% discount on your mortgage fees. If you have a 740 score == in other words you pay your bills on time, you’ve done the right thing, you’re a good citizen – you have to pay 1% more. So, you don’t get a discount for doing the right thing and paying your bills, you get punished. 

We are incentivizing bad behavior. We’re hurting the good people. Since the day you were born, you have been told, “Pay your debts. It’s not your money. You bought it from somebody else. You have to pay it back. If you don’t, it’s stealing.” Now we’re saying if you don’t steal, we’re going to hurt you and in real life, that means that over the course of a 30-year mortgage for a $400,000 home, that’s a swing of more than $14,000, and they’re claiming racism to justify this.  

Black Americans are the only racial group in this country with average credit scores of under 680. Now, why is that? We don’t know. Whites, Hispanics, Asians have higher credit scores. Therefore, as you’d expect, the mortgage style rate for African-American borrowers is higher than the overall population. It’s double in this country’s biggest markets, and that’s the reason the suburbs have different demographics from the cities. That’s called economics. 

Now, if you wanted to change that, you would encourage people to have good spending habits and pay back their debt. But they don’t care about that. Making people happy or getting them out of debt? No, they want to change the suburbs, make them denser so there be more reliably Democratic voting. That’s the bottom line. It’s always about election results. It’s always about power. It’s not about improving anybody’s life.

Meanwhile, the Democratic Party’s donors in private equity, of course, are happy. It will be even harder for Americans with good credit to buy homes. Why? Because that will mean more renters. Renters have homes they own.  


Mortgage rate fee change subsidizing costs for high-risk homebuyers Video

LESLEY STAHL: Home ownership is increasingly out of reach.  

GARY BERMAN, CEO OF TRICON RESIDENTIAL: In our portfolio, the majority cannot buy homes, cannot afford to buy a home or don’t have the credit to buy the homes. I think if you asked a lot of millennials and that tends to be our primary resident, they would probably tell you they don’t necessarily desire to own a home or to own a car. They’ve grown up in the sharing economy and for what’s important to them is lifestyle, right, and so if they can move into this, what we call a turnkey or hotel ready home and have a low maintenance lifestyle, that’s very compelling for them.  

People don’t want even, they don’t want to own anything! They want to be penniless and impoverished, live with the whims of oligarchs. That’s really what they want. 

Do you own anything, Mr. Oligarch Guy? She never asked.  

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