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(Daily Signal)—Horace Cooper is the author of “Put Y’all Back in Chains: How Joe Biden’s Policies Harm Black Americans.” He previously taught constitutional law at George Mason University in Virginia and was a senior counsel to then-House Majority Leader Dick Armey.
The results are in, and on Nov. 5, Americans officially rejected the high prices and spiraling costs that defined much of the Biden-Harris administration—including the least affordable housing market in U.S. history.
Rather than being chastened by the national shellacking he, his vice president, and his party received, President Joe Biden’s Justice Department is pursuing an audacious move that could throw the housing market into disarray and put homeownership even further out of reach for middle-class Americans.
In a high-profile lawsuit filed last month, the DOJ is seeking to crack down on a case of alleged home-appraisal bias in Colorado, but the lawsuit could set a worrisome new precedent for the relationship between mortgage lenders and appraisers. The consequences could be sweeping, and they may weigh most heavily on the black homeowners and aspiring homeowners who the DOJ is ironically trying to protect with this lawsuit.
The DOJ is alleging that an appraiser, Maksym Mykhailyna, undervalued a black woman’s Denver home while she was applying for a refinance. Undervaluation typically results in a higher interest rate and a lower loan amount.
The Biden administration has made cracking down on this kind of alleged discrimination a focus, and Vice President Kamala Harris has led the White House’s efforts. Yet, the DOJ’s case hardly proves the appraiser undervalued the home. Even more importantly, the DOJ fails to show that unlawful racial bias skewed the appraisal results or that this singular incident is indicative of systemic discrimination permeating the appraisal industry.
These crackdowns over an illusory problem have been repeatedly and correctly criticized. The administration is fundamentally trying to expand the federal government’s role in housing with little understanding of how meddling with the appraisal process would ultimately affect prices and homebuyers.
The DOJ lawsuit and much of the Biden administration’s efforts on this issue are misguided. In this latest effort, the Justice Department is going beyond holding an allegedly prejudiced appraiser accountable. Along with Mykhailyna, the DOJ also names Rocket Mortgage, the lender with whom the homeowner was seeking a refinancing, as a co-defendant.
The DOJ’s decision to go after the mortgage lender for the actions of an appraiser in this case not only contradicts federal law, but also risks reversing years of housing industry reforms that keep home prices in check.
Setting precedent to hold lenders accountable for the actions of independent appraisers would reintroduce the conflicts of interest that helped inflate home prices and created a housing bubble in the run-up to the 2008 financial crisis. A repeat of those circumstances would make homes even more expensive and put homeownership even further out of reach for many Americans.
Passed in the wake of the 2008 crisis, the Dodd-Frank Wall Street Reform and Consumer Protection Act explicitly bars mortgage lenders from influencing appraisers. The legislation established appraiser independence by mandating that lenders order appraisals through third-party companies called appraisal management companies. These companies are a critical degree of separation between lenders and appraisers that protect the housing industry from the conflicts of interest that led to the 2008 disaster. The DOJ’s efforts to punish the lender in the Colorado lawsuit threaten to erode the independence of appraisers.
Before 2008, there were no appraisal management companies, and appraisers were heavily dependent on the mortgage lenders that assigned them work. That conflict of interest led appraisers to overvalue homes in order to authorize bigger and more profitable loans for the mortgage lenders. That fueled the market bubble that eventually popped, tanking the global economy, nearly toppling the entire financial sector, and setting many American families back years.
If the Biden DOJ has its way, the U.S. could return to the pre-2008 housing industry. The potential for baseless lawsuits alleging undervaluation will incentivize both appraisers and lenders to overvalue properties—fueling yet more home price inflation and injecting more risk into the system.
Housing costs are already out of control. Minority communities across this country are disproportionately locked out of homeownership. Rather than pursuing splashy headlines for baseless lawsuits that would ultimately hurt Americans and further exacerbate prices, the government should be diminishing the footprint of the government-sponsored enterprises—namely, Fannie Mae and Freddie Mac—that have helped create a second housing bubble in the past 20 years.
The bottom line is that the DOJ’s misguided efforts here could wind up hurting all aspiring homeowners, including the very people of color who the Biden administration says that it is trying to stand up for.
Existing civil right laws already protect homeowners against racially biased appraisal practices. These laws should continue to be enforced. Regulators or legislators could task the appraisal management companies with keeping a more watchful eye over the appraisers and potential trends in their work. But the effort to burden the mortgage lenders with the responsibility of solving appraisal discrimination is not only misguided, it is deeply harmful to aspiring homeowners, the housing sector, and the financial industry.
The incoming Trump administration should immediately audit the Biden administration’s backward housing reforms and halt this lawsuit before it causes damage to the system. Woke, affirmative action policies are misguided and wind up hurting everyone. Voters want a return to simple, logic-driven policy, and this is one area to start with.
We publish a variety of perspectives. Nothing written here is to be construed as representing the views of The Daily Signal.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
