Biden Rule Forces Good-Credit Homebuyers to Subsidize Loans to Higher-Risk Borrowers
Good-credit homebuyers will be forced to pay more for their mortgages to subsidize loans to higher-risk borrowers when a Biden administration rule begins to take effect next month.
A Washington Times report Tuesday sets out the circumstances around the change. It states: Experts believe that borrowers with a credit score of about 680 would pay around $40 more per month on a $400,000 mortgage under rules from the Federal Housing Finance Agency that go into effect May 1, costs that will help subsidize people with lower credit ratings also looking for a mortgage.
“The changes do not make sense. Penalizing borrowers with larger down payments and credit scores will not go over well,” Ian Wright, a senior loan officer at Bay Equity Home Loans, outlined to the Times. “It overcomplicates things for consumers during a process that can already feel overwhelming with the amount of paperwork, jargon, etc. Confusing the borrower is never a good thing.”
Fox News further states the Federal Housing Finance Agency, which oversees federally backed home mortgage companies Fannie Mae and Freddie Mac, believes the change will give consumers more affordable housing options.
That’s over $14,000 over a 30 year mortgage
Welcome to Affirmative action in the finance world.
Work hard save money pay your bills on time get a good credit score, big deal, it now means nothing. You are going to pay for the banks risky loans.
Q. How to spell American relief? A I.M.P.E.A.C.H.-B.I.D.E.N.
Work hard, pay your bills, make your payments and have a good credit score? Way to go, stupid; now you have to subsidize those who don’t. Hell, you don’t deserve to own property anyway.
But… but… but it’s only $40 a month… for 360 months. I wonder when voters (the 40 to 50 million that actually voted for this pile of puss) that Democrats have no idea how people work, earn a living and pay bills. They think it happens like they conduct government business: you take money from other people, waste it, then go get more. Then waste that.