Kudlow says federal government will extend moratorium on evictions

The Hill ^ | July 26, 2020 | Rebecca Klar

[karpov]

White House economic adviser Larry Kudlow said Sunday the federal government will extend a moratorium on evictions as part of the next round of coronavirus relief that will also include another round or $1,200 stimulus checks.

“Don't forget, there's a $1,200 check coming. That is going to be part of the new package. I would have preferred a payroll tax cut, on top of that check. But, be that as it may, politically, it doesn't work,” Kudlow said on CNN’s “State of the Union,” adding that it is a “very well-rounded package.”

“People need that money as soon as possible. People are worried about being evicted,” Tapper said.

Kudlow responded that the federal government will “lengthen the eviction,” referring to the eviction moratorium that expired last week.

Kudlow also defended ending the additional $600 in unemployment benefits, voicing support for a plan to cap benefits at about 70 percent of wages.

[karpov]

Telling landlords they cannot evict tenants for nonpayment amounts to confiscation of property. Where does the Federal government get the authority to do this?

[JoeRender]

What the government should do is pay off all mortgages. That would be a lasting stimulus that would continue far into the future.

[E. Pluribus Unum]

Will the federal government also prevent banks from foreclosing on the landlords because they need the rent money to service the mortgage debt?

Plank #1 of the Communist Manifesto: Abolition of private property rights.

[DuncanWaring]

That would definitely stimulate inflation.

Then people would need to take out mortgages to buy food.

Then the government could pay-off those mortgages ...

[EEGator]

“Where does the Federal government get the authority to do this?”

I guess from the same place they can close all businesses and make people wear masks.

[Alberta's Child]

I believe the Federal moratorium only applies to properties with mortgages that are underwritten or guaranteed by the Federal government.

[karpov]

"I believe the Federal moratorium only applies to properties with mortgages that are underwritten or guaranteed by the Federal government."

Did those mortgages come with clauses saying the Federal government could suspend evictions?

[headstamp 2]

Regarding evictions, is there a mechanism to do a financial statement with regard to the tenant’s ability to pay said rent? Or can a current tenant merely decide to stop paying rent being he can’t be evicted now?

[TalBlack]

Our property isn’t ours anymore. Our business isn’t ours anymore. Our jobs aren’t ours anymore. All over a virus that is as close to harmless as a “pandemic” can get.

One way or another there’s gonna be hell to pay for this...

[Alberta's Child]

It doesn’t matter if it doesn’t say that explicitly. Those mortgages come with so many conditions that the landlord effectively gives up control of the property to a large degree. Most of these loans are made on properties in distressed areas where conventional lenders won’t underwrite the loans themselves.

Keep in mind that the landlord may get a huge concession on the mortgage payments as a result of this provision, too.

[null and void]

No problem, also tell the banks they can’t foreclose on rental properties, nor can the tax collector seize the property for unpaid taxes.

See how far that gets you...

[jerod]

The rent is always due. Evictions will occur and when they do, homelessness will increase by vast amounts. Sad but true...

The people who recommended shutting down the economy to fight this virus will be hunted down and strung up in the near future when the very real and serious depression hits.

[kenmcg]

This is an election gimmick, but why should landlords suffer?

[Leaning Right]

> the federal government will extend a moratorium on evictions <

Why not also have a moratorium on paying for gasoline and groceries? If you’re going to abuse your authority, might as well go all out.

Side note to Mr. Kudlow: I really don’t like paying my property taxes. How’s about a property tax holiday?

[Leaning Right]

> What the government should do is pay off all mortgages. <

I worked hard to pay off my mortgage early. So under your plan I’d be punished for being responsible.

[JoeRender]

The only thing I would say to that is that the current stimulus is fast spending over a short period of time. Mortgage relief would spread out the spending I think a little better.

For the record I am against stimulus packages but if we are going to have them at least try to spread it out and make it last longer. They are already talking about a 3 trillion package. That amount of blow wont last the year.

[Leaning Right]

> The only thing I would say to that is that the current stimulus is fast spending over a short period of time <

I agree that’s not the best method. Perhaps combine your method (mortgage relief) with rent and property tax relief. But any way you look at it, this is going to bust an already busted federal budget.

If it were up to me, I’d start by seizing all Chinese assets in the country. After all, they started this mess. Would that upset the ChiComs? You bet. So it would have to be done carefully. But the Chinese need to pay.

[JoeRender]

You make a good point. The Chinese hold a lot of debt against us. Trump needs to ask them the hand it over because we should not have to pay them.

[genghis]

You can be my senator

[minnesota_bound]

The place I rent has 36 units.The owners tried selling last year for $6.1 million but no takers. Now they cannot sell as any buyer does not know if they will get paid any rent.
I know of a few who took the $600 a week and saved it up and moved elsewhere to hopefully a better job and cheaper location.

I still work and pay the rent..... at least my stock AMD is going up so I am good. I would hate to be unemployed at my age with no savings and reading about the democrats making 10’s of millions and more from insider trading and outright stealing.