Comment Detail

Comment

I am staunchly opposed to this proposal. At a time when inflation is bearing down on households, making it hard for many (especially non-homeowners, who feel the effects of rent inflation -- unlike current homeowners, who were already able to refinance to record-low rates and *reduce* their housing costs at a time of spiking inflation) to make ends meet, and home values have skyrocketed nearly 50% in four years, how does FHFA find it appropriate to introduce policy that will inevitably make these issues even worse? Fertility rates have plummeted in part due to the astronomical costs of living; this proposal will only make these problems worse. In fact, expanding into the HELOC market will only expand the widening wealth gap between current homeowners and everyone else without assets. It will enable current homeowners to withdraw funds in order to purchase additional homes -- thus helping to prop up inflated asset prices and pricing out young buyers from being able to afford shelter, a basic human need. It will keep inflation high as it enables those who already own assets to keep spending and living beyond their means -- at a time when cities like Phoenix are experiencing all-time record numbers of evictions (including throughout the entire GFC!). And, speaking of the GFC, I shouldn't need to remind those reading this that this proposal threatens to repeat the precise leadup to that crisis, enabling homeowners to draw down their equity and drastically increasing volatility in the housing market -- except, perhaps, that this time FHFA expects taxpayers to bail out lien-holders in the event of a crisis?

I have always voted Democrat -- faithfully in every election -- but proposals like these are leading me to reconsider my options.