Biden to Punish Americans with Good Credit Scores in the Name of Equity

Joe Biden is once again proving how little he cares about hard-working American families.

In the name of “equity,” the Biden Administration is rolling out a new rule to punish American homebuyers with good credit scores by having them pay higher mortgage rates in order to subsidize loans for high-risk borrowers.

You heard that right…

If you’re buying a house, starting May 1st, you will be punished for having a good credit score while those with lower scores will be rewarded.

According to mortgage specialists, homebuyers with a score of 680 or higher will pay more, while those with a credit score under 680 will actually get a discounted rate.

This is only the latest boneheaded move by Biden that aims to kill the American Dream.

Biden rule will redistribute high-risk loan costs to homeowners with good credit https://t.co/K917usr6UO

— Fox News (@FoxNews) April 20, 2023

Fox News reports on the latest way the Biden Administration is punishing hard-working Americans:

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.”

Mortgage rates have nearly doubled over the past year and now Biden is forcing good-credit home buyers to pay more on their mortgage in order to subsidize those that are higher-risk https://t.co/fgwGXp4nmL

— Not the Bee (@Not_the_Bee) April 21, 2023

BREAKING: The Biden admin says they plan on PENALIZING middle-class Americans who saved their money by making them pay HIGHER mortgage payments in order to subsidize loan payments for higher-risk borrowers.

Worst President in American history. https://t.co/fSMDuE3Gbr

— Proud Elephant 🇺🇸🦅 (@ProudElephantUS) April 20, 2023

Biden administration hiking #mortgage fees for Americans with good credit to subsidize home buyers with bad credit #Equity https://t.co/RfI9YVkIzt

— Dr. Carol M. Swain (@carolmswain) April 20, 2023

The Blaze has more details:

As part of the U.S. Federal Housing Finance Agency’s push for more affordable housing, home buyers with good credit scores will be forced to pay additional fees on their mortgages. Starting on May 1, the federally backed mortgage companies Fannie Mae and Freddie Mac will establish new loan-level price adjustments with private banks nationwide. Those additional fees will be used to subsidize home buyers with risky credit scores.

The Federal Deposit Insurance Corporation defines loan-level price adjustments as “risk-based pricing adjustments that vary based on credit score, loan-to-value ratio, type of product, and various other factors, charged at the time of origination.”

The Washington Times reported, “Mortgage industry specialists say homebuyers with credit scores of 680 or higher will pay, for example, about $40 per month more on a home loan of $400,000. Homebuyers who make down payments of 15% to 20% will get socked with the largest fees.”

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According to the New York Post, “Meanwhile, buyers with credit scores of 679 or lower will have their fees slashed, resulting in more favorable mortgage rates. For example, a buyer with a 620 FICO credit score with a down payment of 5% or less gets a 1.75% fee discount – a decrease from the old fee rate of 3.50% for that bracket.”

Several people have attempted to make sense of this madness on social media.

In the end, this can only be seen as proof that Joe Biden is indeed the worst leader in American history.

Starting May 1st, home buyers with a credit score >680 will pay a higher mortgage rate to subsidize the costs for home buyers with a lower credit score

The new rule appears to punish home buyers with a strong financial position pic.twitter.com/YbxTDMpK7c

— Michael Burry Stock Tracker ♟ (@burrytracker) April 21, 2023

🚨Biden’s New Mortgage Handout is called SOCIALISM

A New Way To Screw US Over For EQUITY

👎🏻Good-Credit Homebuyers will SUBSIDIZE risky mortgages.
REMEMBER THE MORTGAGE FIASCO IN 2008?

Obamacare did this—my cost tripled. I was told I was paying $225 more a mo. to subsidize it pic.twitter.com/oM7NNMWYNz

— LionHearted (@LionHearted76) April 21, 2023

Biden is now going to force homebuyers with good credit to pay higher interest rates… to subsidize high-risk mortgage borrowers.

We are living during the worst Presidential Administration of our times.

— Ryan Fournier (@RyanAFournier) April 20, 2023

So I wake up a little while ago, and see Joe Biden has CHANGED the rules for Mortgage Rates? If you have a credit score of 740+ you will pay an EXTRA 1% on your mortgage. Those with 620 or less will get a 1.75% DECREASE? How is this legal? 😡😡😡😡😡😡😡😡😡😡

— David Benjamin (@thetoyman1) April 20, 2023

One of the main reasons buyers make large down payments it to get lower mortgage rates. With this new rule, buyers now have an incentive to make lower down payments. Plus, its easy to screw up your credit score to qualify for a lower rate. So it's taxpayers who'll foot the bill.

— Peter Schiff (@PeterSchiff) April 20, 2023