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.
Washington state recently decided, through its Insurance Commissioner, that insurance companies couldn’t consider credit scores to set rates, because people with higher scores are safer risks and get lower rates. Responsible folks get screwed again.
I wonder if the evening news will tell people that your reward for paying your bills on time is a higher rate.
It’s obvious that biden isn’t behind all this. There is a large crowd of radicals who are setting all this up, and he is signing whatever they shove in front of his nose.
Where is this found in the Constitution???
What a Dictitorial SOB...
This is liar loans all over again.
Remember no proof of income required back around 2006 & 2007? Then came the financial crash of 2008 caused by bad loans for houses. Get ready for another crash coming hard and fast!
Executive Order 12631, signed on March 18, 1988.
Taxpayers Backstop no matter the paper MBSs.
Biden is trying to stall the crash until after a Democrat gets elected in 2024. If the crash happens before 2024 we will see a Republican in office.
Executive Order 12631, signed on March 18, 1988.
Taxpayers Backstop no matter the paper MBSs.
Combined with higher interest rates, stuff like this gives me less reason to want to sell my house and move. It’s a nice one-story ranch style in a nice area and I’m over 50 so I’ll just stay put.
Just wait until Biden “wins” re-election.
He ain't running IMHO
I found that you can get a car for half the price of its worth by buying at an auction, if you shop carefully. You’ll still save money even if it needs some work.
Murderers among us.
This is obama taking his anger out on our country.
From those according to their ability.....
How to crash the housing market in three easy steps…
Red Lining in reverse!
This is just another twist of financing homes to those who can not afford them along with negative payment history. It is basically the same scheme that crashed the housing market in 2008. We will again see a glut of foreclosed homes.
Yep.
What’s funny is.... it’s not that hard to lower your credit score. LOL
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.