'There Are No Battery-Powered Dump Trucks': Ralph Norman Grills Maxine Waters On Housing Costs

recognize for any questions you may have thank you Mr chairman um Mr Waters let me just tell you one I think you first addressed the fact that affordable housing we hadn't addressed it or somebody's fault you know why housing is not affordable now uh there are no battery powered dump trucks they're no battery powered um airplanes to fly people back and forth gasoline fossil fuels are still the rule of the day in America you're not going to get rid of oil and natural gas the supply chain for getting materials to the job site um it's just not there I can't get meters for housing we've canceled more housing projects of developments because you can't get stuff time is money um and then you keep saying middle class Rich middle class I know a lot of people if you look at the balance sheet if you look the net income they choose to pay mortgage guarantee Insurance because they have their Equity tied up in other projects so they choose to pay the mortgage guarantee insurance it's risk-based if you own a rental house and uh are wanting to sell it you would want to sell Finance you would have a difference in rate for those who put down 20 or more versus those who put down three percent it's just like Congressman Davidson said it's I mean it's a it's risk-based and it should be uh if you self-financed you needed you would have to have a difference in the interest rate now Maxine you're not doubting that those with lower credit scores and lower down payments are paying less than those with higher scores and more down payments you know I mean you're not disputing that are you no I'm only talking about those who are making less than a 20 down payment but had adequate credit scores I'm not talking about anybody with lower credit scores these are people who have the right amount of of a right credit scores uh not people with less credit scores at all no no so you're saying those with a higher credit score uh and more down and more down payment are going to be paying the same or we're going to be paying more than those with a less per credit score and less uh down payment no you take into consideration that there are fees now that everybody pays and when you are evaluated based on what your mortgage is and all other kinds of things then you have a fee amount but when you put on top of that the mortgage insurance then those people who didn't have the 20 are paying more than those people who had 20 percent or more why is that why is that wrong why is it wrong yeah it is wrong because what you have is people who say that I've not been able I I can afford a mortgage every month but I've not been able to save up 20 and so I know I have to get mortgage insurance and it's going to cost me some money to get it it's going to cost me so much money that when I added to the other fees that you're charging me I'm paying more for the interest rates than the the the person who had more money to pay down yeah but it in in the real world I mean I see them all the time uh if you don't have 20 down payment whether you've got your Equity tied up somewhere else you're going to pay a higher fee through the mgic insurance you just are and you should I should anybody should and forget middle class Rich you know poor it's people up for the whole Spectrum uh what you're saying and is it's just a redistribution is what this is Jim Brown is who recently died and I'm going to get the book it's like saying Jim Brown you had all these scores that you did uh but we're going to take away some of the touchdowns and give to somebody who didn't no no no that's exactly what just Maxine I promise you that's exactly what you're saying that is not that is Davidson am I missing something no I I think the to illustrate the point you could say that the same person decides to buy two properties right and one of the properties let's say that both hundred thousand dollar homes one of them is going to be uh you know he's gonna put fifty thousand dollars in cash down on it and get a separate mortgage well you're going to pay a lower fee because you get 50 equity in the deal the other one it just puts the minimum down three percent and if you look at the table that we submitted in here as part of this if you're only putting three percent down you do have to buy uh mortgage insurance right because you should the risk of the uh default even for somebody who's multi-millionaire on the property that's got a hundred thousand Mortgage in it and only three thousand down payment you owe ninety seven thousand dollars on a hundred thousand dollar house your risk of that mortgage is much higher than your risk on a fifty thousand dollar mortgage on another hundred thousand dollar property the same borrower same person two different properties they have different risk and they should be priced differently has nothing to do with the income of the person but the way that they created this table it is also tied to your credit score and that is the other part that's redistributive it is bad policy it wasn't well thought out and our bill simply says go back and think about it the right way and we give GAO uh the mandate to go and do a study uh and and so then you have to do the rule notice you know they did this the wrong way they implemented the policy and then they got a bunch of pushback from the market and they said you know what we should get feedback from the public well no why don't you get feedback from the public up front and then implement the policy because we could have told you this was a bad idea in the minute that we did they dropped at least the worst idea which was the debt to income portion they continue to cling to this idea that it already took effect May 1st and this bill just turns that off and and the idea of turning something off that shouldn't have been turned on in the first place creates some obligation for us to pick up the tab it's not adding to the deficit it's a bad score and at a minimum the CBO should have to show their work so I hope it helps build one more piece in the evidence file while we eventually pass my CDO show your work Act well I'll just say the uh you know we deal with this all the time and uh I can't tell you the number of high income borrows who've got terrible credit scores again for whatever reason they make a lot of money they don't pay their bills on time I will tell you that hourly mechanic uh who works with us he got a perfect credit score now he can't make uh for a lot of for the inflation and the things that this Administration is doing to this country at this time no he's he's stretched thin now he's got he pays his bills on time now he couldn't afford a 20 that mechanic I'm talking about couldn't afford a uh 20 20 down payment it's just things are tight now but he goes into it with his eyes open he pays a fee just like that physician who overspends uh if if with a terrible credit score he's gonna have to pay a higher fee there's no difference in credit card fees he had 36 percent credit card fees are there because it's risk-based and you don't have a mortgage you don't sign a mortgage on a credit card you walk away and as he is uh uh as Warren says it's just no incentive those who put less down payment have it's easy to walk away from no fault I mean and you take that risk if you have the well the gentleman yeah property yes ma'am the problem is that llpas are double charging bars for risks they're already paying to cover already paying uh with the mortgage insurance don't forget the fees that you pay I get that takes in consideration risk I'll give you an example okay you walked me through an example of what you're talking about that's unfair show me show me two scenarios well there are a whole list of fees let me see I'm going to do we have a list of these no no I'm not talking I know the fees yeah I'm talking about give me two borrows but give me no no no but this you have to take into consideration when you are um here's some factors that determine the llpa for your mouth now everybody has to pay these fees right and they take into consideration a lot of things the purpose of the loan such as to buy a condo or an investment property get the loan features such as a fixed rate mortgage borrower characteristics everything amount of down payment credit score whether the bar received housing counseling first time home by all of this stuff is in the fees that are charged and so when you don't have 20 down you still are being judged in these fees because there's some risks that they have calculated and they have determined so you're paying for the risk and the fees as they're calculated and then on top of that you have to have the mortgage insurance and that means that you're paying more for your mortgage than the person who uh paid um you know 20 down is is Equity is equal izers vaccine is redistributions all you're talking just a moment no redistribution is 180 billion dollar bill that taxpayers are going to have to put the cost of listen even if you don't like the way it works even if you don't think it should work that way I don't believe that you believe that you shouldn't have to pay for it if that's what you're going to do and it's not 180 billion that's determined it's 300 plus billion that Mr David do you believe that that's fair I don't think you do actually you don't want to increase that okay on the debt part of it and on who let's get the examples you gave me oh you didn't really give me two examples of what's fair and what's unfair to walk me through a scenario I get the mgic insurance I get the difference if and I will tell you this if you had a house and I'm sure you you've owned rental property uh you would charge a different if you were self financing you would charge a different uh fee uh call it mortgage guarantee insurance or whatever for those okay go ahead for those who have a less credit score than those who have a higher credit score to protect your interest that you have worked hard to to afford and all I'm saying is this is nothing but redistribution of penalizing those with a good credit score and subsidize those who for whatever reason have a less credit score it's just like the example I gave you Jim Brown uh taking his his record away and give it to somebody because for whatever reason they couldn't do what he did look you're a lover of Jim Brown's and you'll make you'll use Jim Brown as an excuse for everything we talk about this all the time but uh I wanna I'm sorry I said 180 billion and they reminded me that it's 1.8 billion but it's still 1.8 billion got a lot of money with your amendments how much is it I have no amendments uh we have a manager's Amendment but the Amendments that Democrats have proposed managers amendments don't just do deal with this they deal with the whole idea of loan level price agreements and I think your proposal is interesting to waive llpas for the amendment you've proposed to the bill uh for people um who are first-time home buyers interesting it would save them some money it would come at expense of the safety and soundness of Fannie and Freddie but it's not the same as hitting the budget deficit it's it would be funded by Fannie and Freddie it would increase risk that's the amendment that you've proposed there's no pay for uh proposed in your Amendment but it would know it would eliminate not just the new fees that are proposed by uh or implemented by director Thompson it would eliminate all llpas no this is your purpose reclaiming my time no that's not that's that's not okay reclaiming your time uh Maxine I'd love to see it again a breakdown you tell me use whatever number of price for the house you give me two breakdowns so you tell me what's so fair about both of them and I'll be glad to have this debate offline I don't want to take any more time but uh this is none other than redistribution of wealth and you're talking about a product housing so goes the economy so goes housing because you've got over 200 different effect over 200 different areas that makes this a serious issue and it's already hurting right now all across this country um I yield back thank you gentlelady from New Mexico is recognized

Channel: Forbes Breaking News

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Length: 13min 57sec (837 seconds)

Published: Thu Jun 29 2023