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.
Continuing the war on productive, responsible and contributing people.
Sure Joe, that middle class family that worked hard to build savings and good credit should pay more for their mortgage… jackass!
When you can steal elections at-will, you are no longer responsive to the needs of the people.
Even with stellar credit, I don't have hundreds of thousands of dollars lying around in order to buy a home without a loan.
For my wife and me, our money borrowing days are over. My retirement plan wasn’t to retire with a lot of income. Rather, it was to retire with no bills. That means paid off cars, paid off house, paid off everything. My income is so low I pay zero income tax. Fortunately, I worked in computers in a tier 1 market most of my adult life. This means I get a incredibly large social security benefit for me and my wife even though we moved to Kentucky where the cost of living is practically zero. And yeah, we’re awfully close to 850, not that that matters anymore.
Good point!
You will never see another Republican in the White House ever again.
Well, maybe they'd permit a Mitt Romney clone.
The worst president ever. He is an utter catastrophe.
And the !@#$%^& Democrats own it.
I despise the Jihad Junta!
YEAH; I remember the one about a school bus driver who bought herself something like a 500,000 dollar home under some dumbass federal “lets put everybody in their dream home” scheme.
She defaulted on her home loan, found out to late that a 1200 dollar a month paycheck wasn’t going to pay a 5,000 dollar a month mortgage payment!
All the dumbocrats were outraged that she couldn’t live the “life style of the rich and famous” like she thought she should.
If I remember correctly this was under obama, the magic neeeegro!
YEAH; I remember the one about a school bus driver who bought herself something like a 500,000 dollar home under some dumbass federal “lets put everybody in their dream home” scheme.
She defaulted on her home loan, found out to late that a 1200 dollar a month paycheck wasn’t going to pay a 5,000 dollar a month mortgage payment!
All the dumbocrats were outraged that she couldn’t live the “life style of the rich and famous” like she thought she should.
If I remember correctly this was under obama, the magic neeeegro!
How is this legal?
It’s not
Violation of fair lending laws..I’m sure the DOJ/HUD will put a stop to it /sarc
Banks are already in serious trouble with commercial property loans.
WORK AT HOME has jeopardized those commercial spaces.
There won’t be any $$$$$$$ to loan —good credit or bad.
Haven’t got the words to express how glad I am to OWN my property-—NO MORTGAGE at all.
Here Comes 2008 all over again. Smooth Move
Having good credit is racist.
“Seems like this nightmare will never end. Every day it’s something else.”
Not really new. The dems did a lot of the same things in the late 90’s that Bush inherited. And that housing debacle almost cost the US a complete depression. You can thank Clinton, Chris Dodd, and Barney Frank for that one.
Wy69
These certain folks will default on homes just like the last batch that were ‘subsidized’ did.
It has ALREADY happened and anyone who shops for groceries knows it!
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