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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.

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.”

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.”

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.


 

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