sbynews

DelMarVa’s Premier Source for Conservative News, Opinion, Analysis, and Human Interest

Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349

The opinions expressed by columnists are their own and do not represent our advertisers

Biden rule will redistribute high-risk loan costs to homeowners with good credit

Interest rates for mortgages have roughly doubled over the past year

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.”

More

8 thoughts on “Biden rule will redistribute high-risk loan costs to homeowners with good credit”

  1. This is nothing more than a new tax. It’s anyone’s guess where the money actually goes. How many new federal hires will be required to administer this? It will cost more to administer this than the funds received.

  2. I was listening to The Five talking about this very subject on the radio during my drive home yesterday evening. This was a rule that Biden slipped into the American Rescue Plan that requires homeowners with good credit rates to subsidize someone with a poor credit rating with lower mortgage rates thus subsidizing that “someone” with lower mortgage payments. So guess what current homeowners (???) your monthly mortgage payment is about to increase by $40 a month without any of that $40 going against paying off YOUR mortgage. That’s called SOCIALISM.

Leave a Comment

Your email address will not be published. Required fields are marked *