Washington
Washington Seems Eager To Create Another Housing Crisis
Washington seems to be setting up the nation to relive the housing and financial crisis of 2008-2009. That last crisis, of course, had lots of moving parts and reflected many bad decisions, but behind it all was Washington’s long insistence prior to the collapse that banks and other lenders extend more and more mortgage credit to lower-income people, the so-called sub-prime borrower. As the government for years laid on this pressure, the proportion of risky, sub-prime loans in the system grew making the system increasingly vulnerable. In the end, when many of these precarious borrowers failed to meet their obligations, all these lenders and those financial players who were vulnerable to them – in other words all in the financial system – collapsed. Now, 15 years on, the Biden administration is again pushing for more lending to lower-income borrowers and accordingly inviting another such disaster.
On the surface, the new effort looks very different from what existed earlier in this century. The essentials, however, and the effect will be the same. Leading up to the last crisis, Washington used regulatory powers to guide lenders toward sub-prime borrowers, rewarding lenders that followed the government’s lead and punishing those who resisted. The new approach relies on what is called the Loan Level Price Adjustment (LLPA) rule. It would subsidize mortgage fees for lower-income borrowers, those with low credit scores who are unable to offer substantial down payments. Those subsidies would extend to the cost of mortgage insurance, which is typically required when a buyer puts relatively little cash down. The rule would raise the funds to offer this support by charging higher fees to those with better credit scores and who are willing to make higher down payments on properties.
The aim is indisputably a worthy one – to bring more lower-income people into home ownership and thereby give them more of a stake in their community and an important leg up on the path to wealth creation. Worthy as the goal is, however, the new LLPA rule would fail to serve its intentions and bring other ills with it as well.
Fairness, or, to use a word much more common these days, equity, is one such consideration. It seems fundamentally unfair to press higher fees on borrowers who are more likely to repay their loan than on those who are less likely to repay it. It would further seem ill advised to effectively penalize (at least relatively) those who may have postponed their purchase for years in order to amass a larger down payment and who also imposed on themselves the financial discipline necessary to earn a high credit score.
There is a more important economic problem. The new rule, by increasing the proportion of borrowers that are more prone to default, would expose the country’s financial system to an ever-greater probability of widespread losses, in other words, the very same risks that led to the 2008-09 crisis.
To be sure, reduced fees will offer low-income borrowers some relief on their costs and to that extent, make it easier for them to meet their financial obligations. But these fees are only a small part of the cost of home ownership. The size of the mortgage and the interest rate on it constitute a greater portion of the burden. And then, of course, there are also the incidental repairs, a leaky roof, for instance, the failure of home appliances, accidents, and a long list of other expenses with which all home owners are familiar. These costs fall on all, but a low-income person, already only just able to meet even a subsidized payment structure, will, when faced with such expenses, more likely fail to meet the terms of the mortgage. If enough of these borrowers fail, the lenders will find themselves in the same kind of precarious financial position that developed in 2008.
It will take time to develop the full amount of risk involved. Right now, there are relatively few such sub-prime loans on the books for mortgage lenders or elsewhere in the financial system. The bankers seem to have longer memories than the people in Washington. The problem may never develop. It seems that recently the Federal Housing finance Agency (FHFA) has put the effort on pause. If the rule change does go ahead, it will take time to develop a critical mass of risky loans. The risk, however, will growth with each passing week, and then the slightest economic setback, much less the recession that is highly likely to develop soon, could bring on the loan failures and a return to the mess that all, save Washington it sees, remember all too well.
Washington
Caps' Streaks Come to Halt in Loss to Stars | Washington Capitals
Washington’s remarkable road run died on Monday night in Dallas in a 3-1 loss to the Stars, a setback that halted the Caps’ road winning streak at 10 and ended their point streak at nine straight games (8-0-1). The Caps went more than six weeks without tasting defeat on the road, but the Stars and American Airlines Arena proved to be too much to overcome on his night.
Roope Hintz continued his Caps-killing ways, scoring the first and third Dallas goals of the game. But Lian Bichsel’s point shot that clanked off Rasmus Sandin’s right glove and went into the Washington net late in the second period stands up as the game-winner.
Washington scored the game’s first goal, but it was unable to build upon that lead, despite having the game’s first three power plays, two of which came after Dylan Strome staked his team to a 1-0 lead late in the first.
The Caps nursed that lead past the midpoint of the game, but Dallas struck for a pair of goals in the back half of the second period; Hintz tied it on the Stars’ first power play of the night and Bichsel’s shot found twine just over four minutes later.
Dallas goaltender Jake Oettinger entered Monday’s game with four wins in as many career starts against Washington, along with a .950 save pct. and a 1.60 GAA. He improved on those qualitative numbers while running his record to 5-0-0 against the Capitals.
“I thought Oettinger was the big [difference], probably 1A,” says Caps’ coach Spencer Carbery. “Special teams is probably 1B, and then probably 1C is they get a couple of lucky breaks, but then they capitalize. Like the power-play [goal]; a couple of their top players make a good play and shoot it in the net, and the same thing on the third goal. They turn us over, and obviously have to execute there and shoot it past our goalie.”
For the third straight game, the Caps hooked up in a taut, tight-checking goaltender’s duel. Each team had its share of looks at the opposing net, but both goaltenders were at the top of their respective games.
At even strength, the Caps generated offensive zone time and they had some decent looks and chances. Late in the first, the Nic Dowd line turned in a strong offensive zone shift, setting the table for Strome’s line, which hopped over the boards while the Stars were unable to make a change. Taylor Raddysh slid the puck to Jakob Chychrun at the left point, and Strome was able to deflect Chychrun’s shot past Oettinger for a 1-0 Washington lead at 15:39 of the opening period.
All five Dallas skaters had been on the ice for at least 98 seconds when the red light came on.
The Caps started the second period with a full power play, and they had another just before the midpoint of the middle period, but were unable to build on their lead, going 0-for-3 with three shots on the three extra-man chances to that point of the game.
When Dallas got its first extra-man chance, it needed only 22 seconds and just one shot with which to square the score at 1-1. Hintz finished a tic-tac-toe passing play from the bumper, knotting the game at 13:28.
For much of the game’s first 40 minutes, the Capitals were just a play away from a Grade A scoring chance. They’d get the puck to someone in a good spot in the offensive zone, and that player would see an even better play, but the Caps were rarely ever to make the last play needed to activate that superior scoring chance.
With the game even at 1-1 late in the second, and with Washington’s Brendan Duhaime and Dallas’ Brendan Smith being boxed after a fight just over a minute earlier, the Caps overpassed their way out of a good look at the Dallas net, and a subsequent errant pass came all the way back to the Washington end of the ice.
The Stars got in on the forecheck and won the puck in the left corner, pushing it out to Bichsel at the left point. Bichsel floated a wrist shot toward the net, and it caught Sandin’s right glove and went in at 17:35, giving Dallas its first lead of the night.
In the third, Washington had another power play opportunity with which to pull even, but again, no sale. The Caps were held without a shot on that last extra-man opportunity, and Dallas – which now boasts the League’s best home penalty kill (90.5%) – ended up with more shots on net (four) than the Caps (three) on Washington’s four chances with the extra man.
“Yeah, you can definitely look to the power play tonight,” laments Strome. “We’ve been good for a while, but just not our sharpest night. It hurt us for sure, even in the third, down 2-1 and we get a power play and don’t even get into the zone.”
Late in the third, a turnover behind the Washington net resulted in a quick Jason Robertson pass to the slot and a one-timer from Hintz for the third Dallas goal, at 14:58.
Washington was seeking to be the first Eastern Conference team to win in the Dallas building in over nine months.
“Credit to their top guys for capitalizing in those spots,” says Carbery. “But I liked a lot of the things that we did tonight, especially at 5-on-5.”
On a night when the Caps played without winger Andrew Mangiapane and the Stars skated without top pairing defender Thomas Harley, Dallas coach Pete DeBoer concurred on Carbery’s assessment of the Stars’ “top guys.”
Dallas defenseman Esa Lindell was on the ice for more than half of the game (30:37) and for virtually all (7:58) of Washington’s eight minutes with the extra man.
“We need that – the power play with a goal,” says DeBoer. “You’re down a man, you’re down some guys, you’re shorthanded, you’re playing the best team in the league and the hottest team in the league, so your best players have to be your best players tonight, and I thought ours were. Roope, [Robertson], Otter, Miro [Heiskanen], Lindy – those were, and we needed that tonight.”
Washington
Evictions around Washington soar to record high levels • Washington State Standard
Washington is on track to have more eviction filings this year than any other year on record.
Nine counties, including King and Spokane, hit new high marks, and seven others are on their way.
“The state is in an eviction crisis at this point,” said Tim Thomas, research director at the University of California Berkeley’s Urban Displacement Project.
Washington’s policies, like its right to counsel program, have helped keep some of those people from becoming homeless, Thomas told the Senate Housing Committee on Friday. But he said without more action and funding, evictions will rise further.
Some lawmakers are voicing similar concerns.
“The increase in eviction filings is startling and alarming,” Housing Committee Chair Patty Kuderer, D-Bellevue, said. “There will be a tsunami of homelessness if we don’t handle this correctly.”
Kuderer is moving on from her role in the state Senate next month after she was elected in November to be Washington’s next insurance commissioner.
Evictions dropped significantly during the pandemic, largely due to national and statewide eviction moratoriums and rental assistance programs. Once those programs expired, evictions began to climb again.
One in 50 Washington renters, or about 2%, faced an eviction filing in the last year, according to data from the Urban Displacement Project.
During 2024, Clark, Grant, Jefferson, King, Klickitat, Okanogan, Spokane, Thurston and Whitman counties have already broken their records for the number of eviction filings in a year. Asotin, Columbia, Douglas, Kittitas, Pend Oreille, Skagit and Walla Walla are on track to break theirs this month.
Looking at trends in states similar to Washington, like California and Oregon, Thomas said he expects that evictions will not slow anytime soon.
He said one way the state can attempt to manage the record number of evictions is to expand its right to counsel program, which he called “a really powerful policy counterbalancing the crisis and keeping people housed.”
The program was established in 2021 and requires an attorney to be appointed in eviction proceedings for tenants with incomes below 200% of the federal poverty line. In 2024, that’s one person making $30,120 a year.
Since it launched, the program has handled 22,889 cases. About 81% of tenants in these cases ended up in permanent housing, and about 56% remained in the home subject to the eviction proceeding, according to the Office of Civil Legal Aid, which manages the program.
“The role that this program plays is not only a procedural safeguard,” said Philippe Knab, eviction defense and reentry program manager at the Office of Civil Legal Aid. “This program and these attorneys serve as a safety net.”
But as eviction filings rise, attorneys are struggling to keep up, Knab said. “We are currently experiencing a volume of evictions unlike anything we anticipated,” he said.
And with limited resources, some tenants fall through the cracks, Thomas said.
Just under 45% of tenants facing eviction had legal representation in January 2024, according to research from the University of Washington’s Evans School of Public Policy and Governance. A lack of information on the legal process, psychological barriers and logistical challenges are among the biggest reasons why some tenants never receive representation, Will von Geldern, a University of Washington Ph.D. candidate and researcher, told the Housing Committee.
Attorneys can only help those they can reach, he added.
The Office of Civil Legal Aid is asking lawmakers for $8.8 million in the next two-year budget cycle. That money would go toward continuing funding provided in the last legislative session along with adding five additional attorneys in King County.
This budget request will allow the program to keep pace with the current eviction levels, not expand any services, Knab said. He acknowledged that legislators will have budget struggles this year given a multibillion-dollar deficit.
Along with continuing to fund the right to counsel program, lawmakers will likely look at other policy solutions to ease the growing wave of evictions. Financial assistance to tenants and landlords, caps on certain rent increases and improving access to social services could all be on the table when they return in January.
Washington
Report: Washington State quarterback John Mateer expected to enter transfer portal
Washington State quarterback John Mateer is expected to enter the transfer portal, per CBS Sports. The redshirt sophomore has two years of eligibility remaining.
Mateer led the Cougars to an 8-4 record in 2024, as the quarterback threw for 3,139 yards and 29 touchdowns while rushing for 826 yards and 15 touchdowns on the ground. Mateer finished the regular season ranked No. 5 in the nation in total individual offensive production, producing 330.4 yards per game.
The 6-foot-1, 219-pound quarterback backed up Cam Ward in 2023, playing in all 12 games coming off the bench. Similar to Ward a year ago, Mateer is instantly viewed as one of the top available quarterbacks available on the transfer marker. With two years of eligibility remaining, he will be one of the most sought-after quarterbacks.
Mateer has thrown for 3,406 career yards and was a three-star recruit coming out of high school. The quarterback held offers from a range of FCS schools, with Washington State standing as one of his lone FBS offers.
The Little Elm High (Texas) product threw for 2,449 yards as a senior in 2021, breaking a single-season school record that he’d set one year before with 2,268 yards. Schools like Auburn, Wisconsin, Michigan, Florida State, Missouri and Iowa are expected to be in the market for a portal quarterback this offseason. Washington State will close the year bowl-eligible and is averaging 36.8 points per game.
The transfer officially opens on Monday, Dec. 9, 2024. More than 2,800 FBS scholarship players entered their names into the NCAA’s transfer database during the 2023-24 school year. Removing those who withdrew or went pro, the final total sat at 2,707 transfers. That means roughly 25% of all FBS scholarship players hit free agency in one year.
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