blogHOUSTON.net forum

For discussion of items posted to blogHOUSTON.net

You are not logged in.

#1 2009-02-24 08:33:20

Kevin
Administrator
From: Tanglewilde
Registered: 2004-09-08
Posts: 6,929

New CoH "product": Pay bills of bad credit risks to help secure home loans!

The Chronicle's Carolyn Feibel alerts us this morning to an interesting item on the City Council agenda.

We'll turn to the item first, then Feibel's reporting:

21.  ORDINANCE deappropriating $444,064.90 from the TIRZ Affordable Housing Fund 2409 (Fund 2409) under Ordinance No. 2008-828 for the Temporary Emergency Home Repair Program (“TEHRP”) in connection with Hurricane Ike Damage; approving and authorizing guidelines for a New Credit Score Enhancement Program; reappropriating $386,390.00 from Fund 2409 to a New Credit Score Enhancement Program, including delivery costs; and reappropriating $57,674.90 to the TEHRP for Project Delivery Costs

Here is Feibel's description of what's going on:

Houston taxpayers could start footing the bill to help first-time homebuyers pay off debts and improve their credit scores, under a proposal before City Council this week.

The “Credit Score Enhancement Program” will give up to $3,000 in grants to individuals who are trying to qualify for mortgages through the city’s homebuyers assistance program. City officials say some applicants fall short of eligibility by only 10 or 20 points on their credit scores, and paying off some debt balances can quickly improve their numbers.

[snip]

The $444,000 for the program is leftover money from a $1.5 million appropriation the city made for emergency home and roof repairs after Hurricane Ike.

The city has three programs that provide grants for down payments and closing costs for qualified homebuyers. The most generous one offers a $37,500 grant to buy a home that costs $135,000 or less, but only in certain disadvantaged Houston neighborhoods the city is trying to revitalize. Participants cannot earn more than 80 percent of the Houston median income.

The story has some good back and forth between critics and proponents of the proposal.

Additional information can be found in the City Hall backup documents (PDF, Page 79). The language in that document is particularly amusing, as the city department actually calls this proposed (roughly half-million-dollar) program a "new product." Only in the warped view of big government is this sort of wealth redistribution program a "product." And it's a product whose "customers" are going to cost the rest of us hundreds of thousands of dollars!

So, to sum up -- bureaucratic busybodies in your municipal government are proposing to spend nearly half a million dollars on a "new product" that will help people who are credit risks game the system temporarily (at up to $3,000 a pop!) to take on home loans for which they wouldn't otherwise qualify.

Have we learned nothing about personal (and government) finance in the last year or so?

Have we simply gone mad?

Mayor White frequently tells us he brings a businessman's approach to municipal government. If that is anything more than campaign rhetoric, he will squash this bad idea.



Link to post:  http://www.bloghouston.net/item/7524

Offline

#2 2009-02-24 10:25:17

kjb434
Member
From: Cottage Grove - Houston
Registered: 2007-07-23
Posts: 630

Re: New CoH "product": Pay bills of bad credit risks to help secure home loans!

"City officials say some applicants fall short of eligibility by only 10 or 20 points on their credit scores, and paying off some debt balances can quickly improve their numbers."

So why do I have to help them pay off their debts so they can incur a mortgage?

In order for me to buy my house back in 2005, I had to pay off the remain CC debt I had.  Being responsible and paying it off helped big time when it came to getting the mortgage.

Offline

#3 2009-02-24 11:26:08

Slugg
Member
Registered: 2005-11-03
Posts: 108

Re: New CoH "product": Pay bills of bad credit risks to help secure home loans!

Torches and pitchforks?
Tar and feathers?
Hammer and sickle?

Take your pick.. How's about giving me back my money, YOU [redacted] MAYOR?!!?

edit: Houston Tea Party:

Disco Green
Date: Friday, February 27, 2009
Time: 11:00am - 2:00pm
Location:    Fondren Green at Discovery Green Park!!! Right in front of Amphitheatre!!
City/Town: Houston, TX

http://www.facebook.com/event.php?eid=52553704859

Don't see any other published location for it other than Facebook.. It's part of the Chicago Tea Party: http://www.officialchicagoteaparty.com/

Last edited by Slugg (2009-02-24 11:40:00)

Offline

#4 2009-02-24 11:28:52

Kevin
Administrator
From: Tanglewilde
Registered: 2004-09-08
Posts: 6,929

Re: New CoH "product": Pay bills of bad credit risks to help secure home loans!

Feibel's story has made Drudge, just below some national porkulus links.

Offline

#5 2009-02-24 13:00:37

Ubu Roi
Moderator
From: Houston
Registered: 2005-11-24
Posts: 1,766
Website

Re: New CoH "product": Pay bills of bad credit risks to help secure home loans!

Slugg wrote:

Disco Green
Date: Friday, February 27, 2009
Time: 11:00am - 2:00pm
Location:    Fondren Green at Discovery Green Park!!! Right in front of Amphitheatre!!
City/Town: Houston, TX

Don't see any other published location for it other than Facebook.. It's part of the Chicago Tea Party:

Grrrrrr!  I finally discoverd it yesterday after I started talking about doing one and someone clued me in.  They're doing an AWFUL job of pushing it.  Anyone heard anything about it on talk radio?  Who's contacting the blogs?  Where's the viral e-mails? Who's putting together caravans and car-pools?  There are plenty of small neighborhood groups active in this or that subject, that could be brought into this.

It kind of looks like these people have no idea... they heard on the news that Obama was big on Twitter and Facebook, and so they go "me too!"


Those who do not know history are doomed to repeat it.  But they have no idea they're in a re-run.
The GOP has failed us for the last time.  It's time for a new way: the American Conservative Party
Proud non-winner of the Nobel Peace Prize (not even nominated!)

Offline

#6 2009-02-24 14:06:34

Wanderer
Member
Registered: 2006-10-20
Posts: 230

Re: New CoH "product": Pay bills of bad credit risks to help secure home loans!

I'd like to hear more about the tea parties.  They sound great until you check the details ... I mean, what does "tea party" mean in this context?  Is it just people milling around while they hear a couple of speeches?  To be a real tea party you're going to have to destroy some private property that closely identifies with what you are protesting.  In this case, dumping tea in the water would just seem silly.  Are you going to dress up as Indians?

Offline

#7 2009-02-24 14:15:45

Sedosi
Member
From: Hanging with the road kill
Registered: 2005-05-04
Posts: 1,011
Website

Re: New CoH "product": Pay bills of bad credit risks to help secure home loans!

Wanderer wrote:

I'd like to hear more about the tea parties.  They sound great until you check the details ... I mean, what does "tea party" mean in this context?  Is it just people milling around while they hear a couple of speeches?  To be a real tea party you're going to have to destroy some private property that closely identifies with what you are protesting.  In this case, dumping tea in the water would just seem silly.  Are you going to dress up as Indians?

Heh, I was thinking the same thing.


I tend to steer clear of "rabid"* political rallies fueld by unfocused anger.  Typically you end up with a fat guy named Freddie standing next to you and hollaring obscenities.  Curiously this seems to happen regardless of which ideological faction is putting on the rally.

The Boston Tea Party was to protest a tax on tea.  This tea party seems to be in protest of extreme Gov't spending.  Maybe everyone there should consider taking a dump on the Andrea and Bill White Pomenade?**  They could call the the Houston full of S**t party.





*See what I did there?  How I tied that to Clay Robison?
** In case something like this should really happen I'd like to let the wonderful folks at various law enforcement agencies know that I had nothing whatsoever to do with this little bit of silly public disobedience.  Nothing whatsoever. smile

Last edited by Sedosi (2009-02-24 14:16:24)


Taking long walks off the short pier of sanity.

Offline

#8 2009-02-24 15:00:29

Vernon Guy
Prolific Commenter/Volunteer Greeter
Registered: 2005-04-23
Posts: 562

Re: New CoH "product": Pay bills of bad credit risks to help secure home loans!

Let me get this straight...the city borrows money from the county and then the city gives away money to folks with bad credit.

It would be impossible to make up stuff like this.

Offline

#9 2009-02-24 15:35:03

kjb434
Member
From: Cottage Grove - Houston
Registered: 2007-07-23
Posts: 630

Re: New CoH "product": Pay bills of bad credit risks to help secure home loans!

It would be easy just to go in the middle of the night and put soap in the fountains* at Disco Green along with Diesel lettering.

I'm sure some bored frat boys would be up to it.

* The soap in the fountain may encourage a great bum washing event also.  It may steal some press.

Offline

#10 2009-02-24 16:01:32

Kevin
Administrator
From: Tanglewilde
Registered: 2004-09-08
Posts: 6,929

Re: New CoH "product": Pay bills of bad credit risks to help secure home loans!

Empower Texans has a little fun with this:

http://www.youtube.com/watch?v=4IkK3Z9V4OE

And I hear the story got a mention on Rush.

Mayor's people scrambling to back away from this in 3... 2....

Offline

#11 2009-02-24 16:47:01

Kevin
Administrator
From: Tanglewilde
Registered: 2004-09-08
Posts: 6,929

Re: New CoH "product": Pay bills of bad credit risks to help secure home loans!

....1!

Chronicle reporting Mayor White has pulled this item off the agenda, after the public outcry. Blog post updated.

We know that Mayor White rarely gives up on his policies, though, so expect a variant of this lousy proposal to return at some point, when fewer people are paying attention. That's The Houston Way, after all!

Offline

#12 2009-02-24 16:59:16

Sedosi
Member
From: Hanging with the road kill
Registered: 2005-05-04
Posts: 1,011
Website

Re: New CoH "product": Pay bills of bad credit risks to help secure home loans!

Councilman Johnson implied what Kevin is suggesting in the new article:

Jarvis Johnson wrote:

"But I do believe we can do it in a better way, a more thoughtful way," he said. "But we don't want to become enablers, where people count on the city to be the cure-all."

LaE political translation:  We need to disguise what we're doing better so people won't think we're just right-out giving money away.


The Houston Way is alive and well.


Taking long walks off the short pier of sanity.

Offline

#13 2009-02-24 18:00:16

CK
Member
From: Rice Military
Registered: 2005-04-28
Posts: 640

Re: New CoH "product": Pay bills of bad credit risks to help secure home loans!

This whole bunch of basura is just classic Bill White..... so disengenuous intentionally that it should surprise me, but it doesn't.  And.... to think of it, the bad part is, he wants to do this to the rest of the state and we are only going to get the same crap from his replacement.

Offline

#14 2009-02-25 10:19:41

stockbroker
Member
Registered: 2005-10-10
Posts: 195

Re: New CoH "product": Pay bills of bad credit risks to help secure home loans!

You know the big problem with this Tea Party?  Those of us who WORK won't be able to attend!

How about a weekend event?

Offline

#15 2009-02-25 15:27:40

Ubu Roi
Moderator
From: Houston
Registered: 2005-11-24
Posts: 1,766
Website

Re: New CoH "product": Pay bills of bad credit risks to help secure home loans!

And it has yet to appear in any of the national lists.  It's like they have nothing but a Facebook and Twitter presence.  WTF?  I'm beginning to wonder if it's a big fake-out!

EDIT:  I stand corrected.  Mentioned at Instapundit and I found it here.


Those who do not know history are doomed to repeat it.  But they have no idea they're in a re-run.
The GOP has failed us for the last time.  It's time for a new way: the American Conservative Party
Proud non-winner of the Nobel Peace Prize (not even nominated!)

Offline

#16 2009-02-26 19:06:27

pondering penguin
Member
Registered: 2009-02-26
Posts: 1

Re: New CoH "product": Pay bills of bad credit risks to help secure home loans!

Thanks for the mention.

Offline

#17 2009-02-26 22:10:37

rorschach
Member
From: Spring, Texas
Registered: 2005-01-05
Posts: 3,926
Website

Re: New CoH "product": Pay bills of bad credit risks to help secure home loans!

It's on Michelle Malkin's site too.


http://redinktexas.blogspot.com/
"If ever a time should come, when vain and aspiring men shall possess the highest seats in Government, our country will stand in need of its experienced patriots to prevent its ruin.”
Samuel Adams

Offline

Board footer

Powered by FluxBB