Update April 28, 2023: According to a bank loan officer, this would affect only people buying second homes or rental properties by changing their interest rate based on asset to debt ratio, not for primary residences. <\/p>\n\n\n\n
This is a travesty of our constitution in that these kinds of things need to be done by the legislature, not executive order or by bureaucratic decree. To be clear, this only affects new mortgages after May 1st, but can you imagine having to pay $40 or more per mortgage payment ($480+ annually) to subsidize irresponsible poor people with bad credit so they can buy homes, all because you have good credit and can make a substantial down payment? <\/p>\n\n\n\n
https:\/\/www.independentsentinel.com\/disaster-good-credit-rating-means-you-pay-for-risky-homebuyers\/<\/a><\/p>\n\n\n By M Dowling<\/a><\/p>\n\n\n\n A new federal Biden rule will force homebuyers with good credit scores to pay higher mortgage rates and fees so they can subsidize people with riskier credit ratings who want to buy a home.<\/p>\n\n\n\n The fee changes will go into effect May 1 as part of the Federal Housing Finance Agency\u2019s push for affordable housing for risky buyers.<\/p>\n\n\n\n This will affect mortgages originating at private banks across the country. The federally backed home mortgage companies Fannie Mae and Freddie Mac will enact the loan-level price adjustments or LLPAs.<\/p>\n\n\n\n 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, reports The Washington Times<\/a>.<\/p>\n\n\n\n \u201cIt\u2019s going to be a challenge trying to explain to somebody that says, \u2018I worked my whole life for high credit, and I\u2019ve put a lot of money down, and you\u2019re telling me that\u2019s a negative now?\u2019 That\u2019s a hard conversation to have,\u201d one worried Arizona-based mortgage loan originator told The Post<\/a>.<\/p>\n\n\n\n \u201cIt\u2019s unprecedented,\u201d added David Stevens, who served as Federal Housing Administration commissioner during the Obama administration. \u201cMy email is full from mortgage companies and CEOs [telling] me how unbelievably shocked they are by this move.\u201d<\/p>\n\n\n\nIt\u2019s wealth redistribution and will be a disaster since risky homebuyers usually default. The feds will also temporarily ignore lenders\u2019 debt-to-income ratio. It determines if homebuyers can afford to pay their mortgages each month.<\/h6>\n\n\n\n
The fees are allegedly minimal for now, but you know how that goes.<\/h6>\n\n\n\n
If you worked hard to build up good credit, you will pay more so you. can pay for people who built up bad credit.<\/h6>\n\n\n\n