Posted on 04/22/2023 1:30:17 PM PDT by spirited irish
A new Biden administration rule that is set to go into effect will force homeowners with good credit to pay more on their mortgages in order to subsidize loans to high-risk borrowers.
According to a new, insane Biden Admin rule, people with good credit will be assessed higher mortgage rates to subsidize riskier loans to people with lower credit. Homeowners will now be punished for being responsible.
Biden's attack on success in the name of "equity" continues.
(Excerpt) Read more at oann.com ...
I assume that this only applies to FHA home loans.
He has no authority over private institutions and mortgage companies.
The primary goal should be to take control of Congress, and the Presidency if it’s possible.
‘’other minorities’’
No Asians!
You are correct. I almost included “except Asians” in my post.
It is well past time to make democrat voters feel economic retribution for their dumb voting choices.
You have bad grades…no problem lower those with good grades
You can’t pay your student loan…no problem everyone else will pay off for you
You don’t live in US…no problem, just cross the border and you will receive many benefits
You have bad credit…no problem we’ll make those with good credit pay more
You don’t like the sex you were born with…no problem declare another sex and you can use that to your advantage
Etc…etc…etc!
Since the 2008 housing crisis, all standard loans are guaranteed by the federal government via the entities of Fannie Mae and Freddie Mac. It is nearly impossible to qualify for a mortgage under convention terms unless you are a W2 employee. Of course the government loves that because of payroll tax withholding and it can examine every hind you do
If you are 1099 or a business owner with Owner draw or other non W2 income the government cannot control you. When someone who has substantial income but not W2 needs a mortgage the best place to go is the secondary market. There are plenty of good deals and one does not have to undergo the financial colonoscopy that most people volunteer for.
As I understand it, it’s a change to Fannie Mae/Freddie Mac “Loan-Level Price Adjustment Matrix” used by almost all lenders. Any lender who wants the option to sell their loan to Fannie/Freddie must structure the loan in accordance with their guidelines/rules. FNMA/FHLMC own about 2/3’s of all mortgages and is the primary purchaser of mortgages from lenders, so no lender wants to be stuck with a loan they can’t sell.
Notice how the rich always get a discount because they can buy in bulk? Their business processing fees are much lower than for a small business. Hence their beautiful credit rating.
The little guy pays full price, pays penalties because they were short on $$.. Couldn't make payment on time... Lucky if they have any credit rating.
So basically what biden is doing is taking away 1% of the perks the rich dudes got in the past which helped them get the great credit ratings.
The little guy gets 1.7% to help get better in life.
PS:because of biden, I'm sure my credit rating went way way down. So in a way, I'm welcoming this.
This is likely unconstitutional.
This only applies to "conforming loans" of no more than $726K (up to $1.1M in very high cost areas). In other words, middle class homes. The rich don't need these loans, if they need a mortgage at all. This rule is aimed squarely at the middle class.
To add to the above, a 740 FICO credit score (where you incur this penalty) isn’t high, and certainly no indication you are “rich”. 742 is the average FICO score for people 58-76. Mine is 820 and I am certainly not rich.
Only suckers would fall for such a deal.. :(
Here's an idea, let California pay for all of it..
You have no backbone. You support theft from the responsible to subsidize the irresponsible. Go find a leftist forum where your vile lack of morals are welcome. Spppptttt!
So the better your credit score the higher your interest rate will be. Isn’t the idea of a good credit rate is to pay less interest because you’re a better risk? This must be about that equity thing we’re hearing so much about.
.
Thanks for explaining. I appreciate it. :-)
Taxation without representation.
Uh, yeh I was a mortgage broker for 17 years and a Fannie Mae underwriter.
The government tries all kinds of crazy stuff from time to time. Once Lockheed got in trouble and there was a lot of talk about massive layoffs possibly in the works. VA sent out a memo to all the mortgage lenders saying no VA loans to Lockheed employees. I got a VA loan to underwrite for a Lockheed employee. The written verification of employment stated that expectation of continuing her employment was good. I called the Head of Atlanta VA who I knew personally and told him what I had and he said reject the loan. I told him that it was outright discrimination and VA was begging for a class action lawsuit. He didn’t listen. A month later voila’ A class action lawsuit. VA immediately sent out a memo retracting the ban on Lockheed employees. I laughed my adzz off.
This BS interest rate blunder is same deal different day. It will be over before it starts. Its just more trivia to get people worked up over.
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