Not Counting the Costs

     Here we go again. Five years or even ten should allow opportunity to establish credit, save, become acquainted with the basics of home maintenance, and to learn how the real-estate and mortgage markets work. 

     The financial crisis of 2007-08 was driven by "predatory lending" to borrowers who couldn't repay. Some were irresponsible, some unfortunate, and some didn't fully understand what they were getting into. It was about benefits, not risks. 

     Lending institutions get the blame for the cascade of defaults that followed. But overlooked is the roll of the Feds in loosening restrictions and encouraging banks to pave the road to homeownership for low-income buyers, particularly minorities. 

     Now they seem ready to put the thumb on the scales again. The Federal Housing Finance Agency raises mortgage fees for borrowers with good credit in order to subsidize those with worse credit and little or no down payment. This comes when the housing market is already struggling with higher interest rates and low supply. The agency penalizes those who managed their money responsibly in order to reward those who didn't, or who need more time to establish themselves. 

     Perhaps worst of all, it incentivizes homebuying for those who may not be ready for that responsibility. 

     "For which of you, desiring to build a tower, does not first sit down and count the cost." (Luke 14:28). Jesus was talking about the cost of discipleship, but it's still common sense.

     Woe to the government that greases the slope to even harder lessons.

WORLD magazine