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.
California did that a long time ago, didn’t they??
“Do you want a housing bubble?”
“Because this is how you get a housing bubble!”
Don’t you mean Directive 10-289?
Of course and most on here have the cash to buy things, fix things or go without. But buying a house is quite different. The average home in the United States is $428,000. An extremely small amount of people can buy a house outright.
That at least is reasonable. Credit scores should have nothing to do with insurance. If you can’t pay your insurance, you get dropped. Washington finally gets some reality.
Barak 2.0
I have a score around 800+. If I use half of my CC availability my score would go to low 700’s. I could accomplish this in one month.
I don’t see how this is going to actually work in practice.
I just drove past a gas station and we are being punished there too.
not stealing from the rich
he is stealing from the responsible to pay for the irresponsible and bad decision makers,
not biblical either
Another Biden administration plan to flat line the money scale except for those who make the rules.
Karl Mark taps box
???? I thought banks made loans. How is this suppose to happen logistically?
“And that housing debacle almost cost the US a complete depression.”
If I remember, I may be wrong, it was when you had to put no money down to purchase a home, many defaults arose. I believe at one time you needed 20% 0f the borrowing price.
Do it like the Amish with interfamily lending
Way to completely shut down the housing market. Maybe thats what they want
These evil commies have to go!
Punish good behavior. Reward bad behavior. Is anyone surprised at the results?
People should completely boycott the real estate market then. This is out of control, who gives Biden the power to decree such a thing? It’s absolutely evil and unfair!
There will be a whole lot of people thinking like you!
What a dumb mfer.
But I digress.
bkmk
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