🍊 🇺🇸 OC Conservative Brief - 5.5.23

Good morning, happy Friday, and welcome to your weekly edition of the OC Conservative Brief, your run down of Orange County's local politics from a conservative perspective.

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This week, we have a primer on what Biden's latest manipulation of the mortgage lending market means for Orange County (hint: you'll likely be paying more) and the latest on what's going on with Senator Dianne Feinstein (she just released a statement last night!), but first we have to dive into the DUI news that shook the OC political world this week...

DUI DAVE!? Democrat state Sen. and OC congressional candidate r Dave Min turned the race for the 47th congressional district upside down on Wednesday morning after announcing on Facebook that he had been charged with a DUI while driving in Sacramento the night before.

Given that Min is considered the front-runner Democrat for the open 47th district seat vacated by Rep. Katie Porter, and is endorsed by Porter and others in the Democrat establishment, the news shook the political world, generating headlines in the LA Times, Fox News, Politico, Breitbart, the Hill, and a slew of other publications both locally and nationally.

According to the California Highway Patrol, officers first saw Min late Tuesday night driving in a state car without headlights on, then watched him “stop at a red light momentarily but then proceed into the intersection while the light remained red." They pulled him over, determined he was driving under the influence, and arrested him at 10:51pm.

• “Last night I was cited for a misdemeanor for driving under the influence,” Min broke the news on Facebook. “My decision to drive last night was irresponsible. I accept full responsibility and there is no excuse for my actions. To my family, constituents and supporters, I am so deeply sorry. I know I need to do better. I will not let this personal failure distract from our work in California and in Washington.”

Reactions on the Republican side of the political world were swift. The National Republican Congressional Committee chided Democrats for remaining silent; the Orange County GOP dubbed him "DUI Dave" and called on him to drop out of the race. The California GOP released a list of Min's endorsers and called on them to rescind their support; a prominent OC Register columnist called on him to drop out as well.

While one of Dave Min's Republican opponents in the race, Scott Baugh, declined to comment on the matter, the other Republican candidate Max Ukropina released a statement:

• “I’m thankful that law enforcement was able to intervene and glad that no one was hurt. It’s incredibly disappointing to see career politicians behave this way while representing us in Sacramento. It’s yet another reminder that Orange County deserves new leadership, which is why I am running for Congress."

Democrats, meanwhile, have kept their mouths shut. Joanna Weiss, another Democrat running in the race, declined to comment, while Katie Porter has remained silent as well.

So what does it mean for the actual race? For now, all the intrigue remains on the Democrat side of the ballot. As the nonpartisan Cook Political Report, which assigns race ratings, put it: "Min’s chances just took a big hit, but not necessarily Democrats’ chances. We won’t change our ‘Lean-D’ rating of the race based on this development.”

• The LA Times notes: "There is still time for Democrats to coalesce around Weiss and put up a strong fight to keep the seat."

With nearly a year to go until the primary, anything can happen.

GOOD CREDIT? BAD NEWS... A quietly enacted regulation from the Biden Administration took effect on Monday, and it could have bad financial repercussions for Orange County homebuyers with good credit.

Under the new rule from the Federal Housing Finance Agency, borrowers with good credit will pay increased fees on their mortgages (via their loan level pricing adjustment) in order to reduce (subsidize) the fees for riskier borrowers with lower credit.

The goal, proponents say, is to help make home buying more affordable for lower-income and minority groups who have been historically locked out of the market.

• HOWEVER: Experts point out that Asian Americans, who have higher credit scores than any other demographic but still experience higher mortgage denial rates, could be hit hard by the new rule.

So what's it going to cost? According to Fox News, borrowers (both new and refinancers) with a credit score of about 680 will pay around $40 more per month on a $400,000 mortgage. Given that the average credit score in Orange County is 736 and that the average OC home price hovers near $1 million, Orange County buyers will be paying far more.

• YES, BUT: Proponents of the rule point out that, even with the new fee change, lower credit borrowers will still end up paying far more in fees than people with higher credit scores.

"Penalizing Americans for paying their bills on time makes no sense," OC Rep. Young Kim (R) tweeted recently. "The Biden administration’s absurd rule is making the American dream harder to reach."

Other experts question the wisdom of making mortgages even more expensive for good credit buyers at a time when interest rates are already sky-high and home sales are tumbling.

House Republicans have unveiled legislation to repeal the rule, though its future is bleak unless it can find 51 votes in the Senate and force President Biden to sign it. Finance officials from 27 states penned a letter to Biden warning that "this new policy will be a disaster."

But it's not just Republicans who are skeptical of the rule. Even President Obama's former Federal Housing Administration Commissioner slammed the change:

In the meantime, I'm trying to remember what happened the last time Fannie Mae and Freddie Mac encouraged the lending market to lower standards and push borrowers into homes they otherwise couldn't afford...

FINDING FEINSTEIN... Washington Democrats have had one question on their mind lately: "Where in the world is Senator Dianne Feinstein?!" The question has consumed the media as well, with headlines reporting on what her critics and the 89-year-old Senator herself are saying.

They know exactly where she is. Feinstein has been in California since late February recovering from shingles. While she and her office have been in communication, she hasn't been in Washington to vote in over two months, which has posed serious complications to the Democrat's narrow 51-49 Senate majority.

• Specifically, Feinstein's absence from the now-deadlocked Senate Judiciary Committee has prevented Democrats from advancing some of Biden's more extreme judicial nominees, forcing the White House to change strategy and work with Republicans.

That isn't sitting well with Democrats, though. The New York Times editorial board this week called on Feinstein to resign, as have AOC and California Rep. Ro Khanna, along with dozens of liberal activist groups.

• Notably, the Democrats running to replace Feinstein (Rep. Katie Porter, Rep. Adam Schiff, and Rep. Barbara Lee, and others) when she retires next year have remained silent.

As of Thursday, Feinstein isn't backing down. She released a statement yesterday reiterating that she plans to return to the Senate soon, though she did not offer a specific date, and advance Biden's nominees who are currently stuck in committee.

If Feinstein did bow down to pressure and resign, it could upturn the 2024 California Senate race for her seat. Governor Newsom, who would be required to appoint a replacement to fill out the remainder of her term, has already pledged to appoint a Black woman if that were the case.

• Some have speculated that Rep. Barbara Lee, who is already running for the seat, would be the obvious choice, which would undoubtedly give her a huge advantage in the 2024 race for the full term.

Alternatively, Newsom could appoint a new Senator who will serve out the remainder of Feinstein's term and has no intention of running for a full term of their own.

In any case, keep an eye on Dianne Feinstein. Until she's actually back in Washington, anything is possible.

WAIT, THERE'S MORE...

💰 Governor Newsom's "Reparations Task Force" tasked with recommending how the state can compensate Black residents for slavery is planning to urge "down payments" including "$2,300 per person per year of residence."

📰 A bipartisan Sacramento bill that would require Big Tech companies to pay newsrooms for the news content they use to generate advertising revenue advanced through a committee vote this week.

🐘 The Orange County GOP is planning to launch a new "Run Red" program for the 2024 elections that will train local candidates and encourage collaboration up and down the ticket in November.

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Have a tip on a news item in Orange County conservatives should know about? Drop me a line at [email protected]