HISTORY REPEATS ITSELF; FIRST AS TRAGEDY, SECOND ON PURPOSE: The Biden Administration’s Loan Level Price Adjustment and a Repeat of the Housing Crisis. “This time, the Biden Administration is attempting to play with mortgages, in an effort reminiscent of the pre-2007 federal follies that gave us the housing crisis and the Great Recession. The rule violates the federal government’s constitutional powers; it violates the dictates of fairness; and it violates the most basic tenets of financial prudence. At best, it would punish those who have saved diligently and managed their money carefully. At worst, it would place the individuals it is designed to help in a precarious position, saddling them with mortgages that many will not be able to service. Then, of course, there are potential unintended consequences for the economy.”

Luring people into mortgages they can’t afford — what could possibly go wrong?