How Should The Federal Government Help Homeowners? [Housing Tracker]

Debate on HUD and Government Efforts

To Fight Poverty, We Should Start By Tearing Down HUD. “Since its inception, HUD… awarded grants and underwrote loans that affirm local development priorities... But in the last four decades the urban landscape has changed from discrete, independent cities to vast, interdependent regions where people and goods move freely… Poverty is rising faster in suburbs than in urban cores… For example, in large cities like Atlanta, Baltimore and Chicago, a program [to fight inner-city poverty] reshuffled [poor] project residents to outlying neighborhoods and struggling inner-ring suburbs whose mayors lack the experience and resources… More than 80% of the families who left Chicago's demolished projects moved into equally poor, racially segregated neighborhoods.” (NY Times via Chron.com, Aug. 2^nd) 

States Are Best Suited for Regional Development. “As a former assistant secretary of the Department of Housing and Urban Development, I agree with Sudhir Venkatesh that HUD should be shut down. But I disagree with his proposal for a new cabinet agency for urban regional development. Why should one expect the federal government to be any more successful at regional development with a new agency than it was at community development with HUD? States are the natural leaders in regional development, using bi-state compacts where appropriate, and can tailor their programs to local needs and values. Moreover, they have resources, unlike cities.” (NY Times Op-Ed, Aug. 2^nd) 

Time To Rethink The Way We Do Housing In This Country. “The vast majority of federal housing expenditures — roughly $80 billion a year — finance the home mortgage housing deduction. Only 30% of taxpayers use it. Applicable to homes worth up to $1 million, it overwhelmingly benefits the richest Americans… Federal dollars could be shifted to people in real need of housing [by] converting the deduction into a straightforward tax credit for low-income renters, or to benefit middle-income renters or homebuyers in highly inflated local housing markets… Right now, Congress has an opportunity to help low-income renters by approving the national affordable housing trust fund. It provides a significant new opportunity to assist low-income renters, with funds from the Federal Housing Administration and contributions by Fannie Mae and Freddie Mac… A next big breakthrough would be to restore HUD.” (Houston Chronicle, Aug. 2^nd)

 

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Comments

[muley101:]

The government wants ignore the fact that there is a large segment of the population who should never own a home. They are just not responsible enough. Many are just not financially intelligent enough to establish a budget that allows them to pay their loan. And, many see an opportunity to incorporate all of their debt into one low interest mortgage payment - which they can not afford either. We need to establish minimal national mortgage qualification standards which all mortgage issuers must adhere to, or their loan is invalid. We also need to establish national fixed rates for mortgages and do away with balooning mortgages.

2008 Aug 04 08:18 AM

[nukldrager:]

It wouldn't hurt to introduce money basics in kindergarden, and continue the process through high school.

2008 Aug 04 08:54 AM

[texasgolfer:]

nothing wrong with beginning financial education earlier, but most teachers are not qualified to teach because they do not know. The world is only payment driven and that will not change because business promotes it.

2008 Aug 04 10:56 AM

[liberty4all:]

Why should the government (Fed or States) even be involved? This is a matter for the free market to find the right balance of home ownership versus rentals... There should be no government incentives to own a house. Those for whom it is desirable, will find the way to make it happen... for those others, they can rent. Why should the government be taking money from one person's pocket to help someone else buy a house. The governments only role should be in making sure there is not discrimination in contracts and in enforcing contracts willingly entered into by individuals and/or businesses.

2008 Aug 04 12:49 PM

[CLH:]

Right on user. I find I totally agree with your above comment.

2008 Aug 04 01:37 PM

[User 238114:]

Well, I agree to a point. But what do you do if your spouse gets ill and becomes disabled and you have no other income, what do you do about the mortgage then, no one plans on having there world turned inside out and upside down. My daughter can not finish college due to no money, We cant afford to pay for our home or vehicle now, so what do we do? We never asked anyone for anything and now that we need help we get nothing!

2008 Aug 04 05:58 PM

[neeb??:]

At one time homes were bought to raise a family in. The only time you even put up with a partial mortgage was illness. Now it's used for everything but...

2008 Aug 04 08:38 PM

[roxie:]

Everything the government is doing is for those who can't afford their mortgages. How about those of us who have been responsible, been paying on time, not late, but now in the the same perdicament many are in and that is having an upside down mortgage. Where is help for us? We are being responsible and getting no help. All I ask, if you are lowering the rates for those people who can not afford their home, and now can why not those of us who are trying everything to make sure we can. I am a single mom with two daughters in college and I am recently divorced and have taken on a second job. My home is now $200,000 upside down. My first is at an 8.75% and my second is a 12.5%. Why isn't there any help for people like me? All I want is a lower interest rate. I'm willing to keep my house. I guess the only solution is to hand over the keys to the bank. I think that is what the government wants. Taking a loss for banks is financially a better bet, then the government will step in. What are we telling people? It is alright to be irresponsible. Great thing we are teaching our kids--Our FUTURE!! UNBELIEVABLE!!!!!

2008 Oct 11 06:59 PM

[User 192319:]

I sure do agree with this comment. I mean it's one of the biggest challenges our youth/young adults seem to have once they start earning money ... they don't know how to manage it.
Linda ... whatcom county and bellingham real estate


On Aug 04 08:54 AM nukldrager wrote:

> It wouldn't hurt to introduce money basics in kindergarden, and continue
> the process through high school.

2008 Oct 21 02:56 PM

[njones:]

ok not fair, i could afford my home, and i used my 401k as a down payment on my home that was overpriced in 2005. Then I took out an equity loan to do fix up (needed roof)! I should be able to refinance at a lower rate even if it's the same money due!! Not fair. I am not late on my payments!!!

Apr 29 10:46 AM

[njones:]

And I my second is Fannie Mae...my first is the beloved "Countrywide"..who is now the wonderful institution of Bank of America....so who am I but a tiny grain of sand...

Apr 29 10:50 AM