I have to wonder, where does Biden get the statutory authority for this? Has it been expressly authorized by the duly elected Legislative Branch? Or, do Brandon’s people just pull this out of some minor legislative language that really wasn’t meant to do this, but, they’ll take the power? How does he have the power to institute a levy on a person’s private loan?
Biden rule will redistribute high-risk loan costs to homeowners with good credit
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 Federal Housing Finance Agency, which oversees federally backed home mortgage companies Fannie Mae and Freddie Mac, has long sought to give consumers more affordable housing options. But those who work in the industry believe the new rules will only serve to frustrate and confuse people.
“This confusing approach won’t work and more importantly couldn’t come at a worse time for an industry struggling to get back on its feet after these past 12 months,” David Stevens, a former commissioner of the Federal Housing Administration during the Obama administration, wrote in a social media post responding to the new rules. “To do this at the onset of the spring market is almost offensive to the market, consumers, and lenders.”
Is it a lot of money? On the surface, no. Let’s say $20 a month for a $200K loan. That’s $7200 for a 30 year loan that you, with good credit and down payment, are paying for the whim of a Progressive a-hole who’s been rewarded quite well for his time in government (and is getting a free wall at his beach house).
Under the new rules, consumers with lower credit ratings and less money for a down payment would qualify for better mortgage rates than they otherwise would have.
It’s like rebooting a bad TV show, as we’ve seen this before, and it helped lead to a worldwide recession in 2008. Foreclosure rates were up 116% in 2022 over 2021 and 2023 is on pace to be over 100% compared to 2022. If this rule doesn’t get destroyed in the legal process, 2008 will happen again. How many years will it take to get there?
And, you’ll probably see homes rise in cost even more, with people getting loans for homes they cannot really afford. But, hey, Progressives love redistribution, regardless of outcomes. Wait till those with good credit realize they’ll be footing the bill. It reminds me of this old Obamacare article, in which we read ““Of course, I want people to have health care,” Vinson said. “I just didn’t realize I would be the one who was going to pay for it personally.””
Anyone remember when we were told that Joe Biden was the moderate candidate among the Democrats for the 2020 nomination?
Why should people who have worked hard in their careers and maintained a top credit rating be forced to subsidize those who didn’t work as hard and trashed their credit? If someone wants to do something like this voluntarily, great, but it should never be imposed on anyone.
This bovine feces makes me glad that we have a conventional loan, rather than FHA or VA, for the rental house we own.
We are living in the brave new world of leftists where everything has to be based on equity. Take from one group and give to another. It’s the way leftists roll. Feel lucky they didn’t just pass a law saying white people have to pay a tax to blacks to buy a house. The Fairness In House Reparations Act.
It’s just another tax. Something that is well within the authority of the HOUSE OF REPRESENTATIVES to levy. No president can do that by executive order.
Yeah, just like forced vaccinations and forced business closings…can’t happen here. /sarc
We have seen this movie before and it doesn’t have a happy ending. The older folks among us have seen a couple of remakes and the ending never gets better.