Posted on 04/20/2023 6:10:29 AM PDT by Red Badger
A Biden administration rule is set to take effect that will force good-credit home buyers to pay more for their mortgages to subsidize loans to higher-risk borrowers.
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, according to a Washington Times report Tuesday.
"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, told 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."
The Federal Housing Finance Agency, which oversees federally backed home mortgage companies Fannie Mae and Freddie Mac, has long sought to give consumers more affordable housing options. But those who work in the industry believe the new rules will only serve to frustrate and confuse people.
"This confusing approach won’t work and more importantly couldn’t come at a worse time for an industry struggling to get back on its feet after these past 12 months," David Stevens, a former commissioner of the Federal Housing Administration during the Obama administration, wrote in a social media post responding to the new rules. "To do this at the onset of the spring market is almost offensive to the market, consumers, and lenders."
(Excerpt) Read more at foxnews.com ...
The democrats are Useless
They’re worse than useless. They’re dangerous.
L
This Socialist BS has gotta stop. But it won't. As Laz would say, "We are so screwed".
doubled??? Lot more than that...
“A Biden administration rule..”
So… I guess we are no longer a nation of LAWS, rather, a nation of RULES now?!?
And not a (sincere) peep from any of the other hundreds of “lawmakers”…
We live under tyranny, folks.
I would think this is illegal.
Insurance companies have been doing it forever....................
Marxism
“Last year, the FHFA eliminated upfront fees for first-time buyers who are at or below 100% of their area’s median income, or 120% in areas that are identified as ‘high cost.’”
The Dems have gone from demonizing the well to do and penalizing their success to now demonizing the middle class and penalizing them for being responsible to curry favor with their constituent identity politics groups. I guess they cannot add. This last tactic will lead to a net loss of votes for them because the middle class has bigger numbers than the groups they traditionally pander to.
The whole point of Communism is to destroy the ‘Middle Class’........................
Well, most fee payers already got a big ‘education’ in Marxist redistribution in college.
$58,000/year for thee
zilch for that “underprivileged” gal there
Can’t it be $29,000 for all?
Can’t have such equality, comrade!
The numbers of the middle class are dwindling quickly though. All by design. They are trying to push most of the middle class down to being poor to implement a type of corporate state feudalism.
The last housing crash was caused by the goverment. Rules were put in place that forced lenders to give loans to those that were not qualified due to their poor financial status. It crashed and the taxpayers took it in the ass. I guess Joe wants this to happen again.
A year ago I thought the Biden administration (Biden is not running it) was incompetent. I was wrong. They are very competent at wrecking the economy of the USA and encouraging social unrest and mob violence. Their true objective is Marxism they think will rise from the ashes of a destroyed nation. They are the vilest of people.
Where have we seen this 'chit" before? Oh, that's right, with the disastrous CAR act (bundling crap mortgages with
sound investments) that led to the economic free fall of 2008.
Those wily Dem/Communists are going back to previous pages in their playbook to destroy the middle class.
This is an older article from this, but I doubt the rules have changed. According to the article the fees are calculated upfront during closing costs and not tacked on as a monthly fee.
Also, this is just for Freddie Mac and Fannie Mae loans.
https://www.mortgagenewsdaily.com/news/01192023-big-llpa-changes
What a great lesson to teach people who are responsible and pay their bills on time. Is acquiring and maintaining good credit another one of those white supremacy traits like being polite and being on time and respecting authority and planning for the future?
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