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Biden Now Punishing Americans With High Credit Scores To Subsidize Certain Homebuyers
The Daily Wire ^ | April 19, 2023 | Tim Meads

Posted on 04/20/2023 12:33:16 PM PDT by Twotone

Just when you think the Biden administration can’t possibly have any more awful ideas, his team rolls out a plan to punish Americans with high credit scores to subsidize high-risk homebuyers.

On Wednesday, The Washington Times reported that starting May 1, Americans purchasing a new home or refinancing their existing mortgage can expect to pay higher mortgage rates and monthly fees if they have a higher credit score. Americans with lower credit scores and smaller down payments will be given better rates. In other words, Biden is essentially stealing from the rich to give to the needy by adjusting the fees on loan-level price adjustments.

“The changes do not make sense,” senior loan officer at Bay Equity Home Loans Ian Wright told the Times. “Penalizing borrowers with larger down payments and credit scores will not go over well. 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.”

It makes sense if you are a member of the Biden administration. In the name of equity, the Biden administration seeks to close the racial gap in homeownership. To do this, they are enacting numerous changes to the housing market that will benefit those at the lower end of the spectrum — which tend to be minorities for a variety of reasons.

So, according to The New York Post, industry experts say that its going to wind up backfiring.

“It’s going to be a challenge trying to explain to somebody that says, ‘I worked my whole life for high credit and I’ve put a lot of money down and you’re telling me that’s a negative now?’ That’s a hard conversation to have,” one expert told the Post.

Even former Obama officials are sounding the alarm.

“It’s unprecedented,” David Stevens, Federal Housing Administration commissioner under President Barack Obama, told the Post. “My email is full from mortgage companies and CEOs [telling] me how unbelievably shocked they are by this move.”

The push to put “riskier mortgages” in the hands of those who couldn’t otherwise afford homes also could cause disruption should a recession hit — which the Federal Reserve is predicting.

None of this matters to President Joe Biden and his ilk. They never let a bad idea get in the way of equity.


TOPICS: Business/Economy; Crime/Corruption; Front Page News; Government; News/Current Events
KEYWORDS: biden; bidenadm; bidenadministration; bidenvoters; credit; creditscores; dementiajoe; democrats; homebuyers; homosexualagenda; housing; letsgobrandon; mortgage; obama; obozo; poopypantsbiden; worthlessjoe
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1 posted on 04/20/2023 12:33:16 PM PDT by Twotone
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To: Twotone

UGH, will we even make it thru the next two years


2 posted on 04/20/2023 12:34:55 PM PDT by 1Old Pro
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To: Twotone

Seems like this nightmare will never end. Every day it’s something else.


3 posted on 04/20/2023 12:35:18 PM PDT by duckman ( Not tired of winning!)
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To: Twotone
So Robin Hood was a realtor.
Who knew?

/sarc

4 posted on 04/20/2023 12:37:20 PM PDT by GaltAdonis
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To: Twotone

I guess Democrats who voted for these clowns agree and gladly will pay more.


5 posted on 04/20/2023 12:37:53 PM PDT by Mark (DONATE ONCE every 3 months-is that a big deal?)
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To: 1Old Pro

Easy fix. Don’t borrow money. Live in your means.
Like the people that take out a 7 yr loan on a new car. Insane. Buy and drive an old one like I do. Besides saving taxes too. I put new shocks, new ball joints and new brakes on my old Nitro for less that the sales tax amount on a new car. 200K and still running fine.


6 posted on 04/20/2023 12:38:36 PM PDT by oldasrocks (quew)
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To: Twotone

Isn’t this how the old housing bubble in that blew in 2008 happened? You had loans subsidized and regulated through the government to make it easier for high risk debtors to get them?


7 posted on 04/20/2023 12:40:02 PM PDT by z3n (Kakistocracy)
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To: duckman

Something about all this seems counterintuitive. Down is up, white is black, night is day, right is wrong. Just more of the affirmative action reverse psychology this regime adheres to so tenaciously. Are they being wrong-headed on purpose, or are they really that sh*thouse-rat crazy?


8 posted on 04/20/2023 12:40:46 PM PDT by alloysteel (Fiction has to be at least plausible, while reality obeys no such constraint.)
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To: Twotone

Obama (pi$$ be upon him) accused the mortgage folks of red-lining and basically forced those folks to start making risky loans (CRA on steroids).

Could this be Ver 2.0 ?? or posibly reverse red-lining ...

Just when we think that the phanatics, phreaks, and phags in this administration are out of stupid ideas they open a new barrel ...


9 posted on 04/20/2023 12:40:47 PM PDT by ByteMercenary (Cho Bi Dung and KamalHo are not my leaders.)
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To: Twotone

FJB. I’ll buy out of country before I buy here.


10 posted on 04/20/2023 12:43:41 PM PDT by LibWhacker
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To: alloysteel

There also seems to be a serious lack of details here. Since when does the Federal government set interest rates for mortgages? I signed a mortgage on a home a few years ago, and the interest rate was negotiated between me and various lenders.


11 posted on 04/20/2023 12:44:44 PM PDT by Alberta's Child ("I've just pissed in my pants and nobody can do anything about it." -- Major Fambrough)
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To: duckman
Seems like this nightmare will never end. Every day it’s something else.

That's what happens when your country is taken over by a hostile ideology. Once you accept that whoever is pulling Biden's strings hates the USA and wants to destroy it, your outlook won't improve, but things will start to make sense again.

They blatantly stole the 2020 election and got away with it. Now they get to take this country apart as they see fit.
12 posted on 04/20/2023 12:46:16 PM PDT by fr_freak
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To: Twotone

Punish the responsible to reward the irresponsible.

Just following the same playbook used for college financial aid.


13 posted on 04/20/2023 12:46:22 PM PDT by lightman (I am a binary Trinitarian. Deal with it!)
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To: Twotone

Joe Biden’s idiocracy!


14 posted on 04/20/2023 12:48:11 PM PDT by parmamenian (and so it goes!)
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To: Twotone

While it does feel redistributionist, the primary goal of this is to enable the federal government to keep the housing bubble from collapsing. It greatly expands the number of buyers by essentially rewarding risky loans backed by the government.


15 posted on 04/20/2023 12:48:52 PM PDT by Codeflier (My voting days are over. Let it burn...give the people what they want good and hard.)
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To: Twotone

That should fix the train wreck housing market.


16 posted on 04/20/2023 12:49:21 PM PDT by bray (Dr Fauxi killed millions)
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To: Twotone
To do this, they are enacting numerous changes to the housing market that will benefit those at the lower end of the spectrum — which tend to be minorities for a variety of reasons.

Does anyone know how they are doing this? I've seen a half dozen articles saying that they are doing it, but none tell the method or who gets the extra money from better borrowers.

17 posted on 04/20/2023 12:49:49 PM PDT by KarlInOhio (Democrats' version of MAGA: Making America the Gulag Archipelago )
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To: Twotone

Individuals with excellent credit scores typically do not opt to refinance their mortgages at elevated interest rates, which is one of the reasons their credit scores are high.

I only make purchases with cash on hand, and if I don’t have the cash, I refrain from buying until I can afford it.


18 posted on 04/20/2023 12:51:02 PM PDT by DEPcom (DC is not my Capitol after Jan 6th lock downs.)
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To: Twotone

How is this even possible?

Ditch McConnell’s fault.


19 posted on 04/20/2023 12:52:07 PM PDT by Paladin2
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To: Twotone

This is obama.......won’t be satisfied ‘till the hood rats are living next door


20 posted on 04/20/2023 12:53:14 PM PDT by V_TWIN (America...so great even the people that hate it refuse to leave!)
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