Good day all. As anyone who buys things on credit will tell you, your credit score can either help or hinder your purchasing ability, especially with big ticket items, like a home. A good credit score can save you thousands of dollars, while a bad one could make it impossible for you to buy a house.
We all know the basics when it comes do getting a good credit rating. Pay your bills on time and don’t carry a large balance on your credit cards. (Or any balance if you can avoid it) However, once again. The Marxists, Morons and Moonbats, (But I’m repeating myself), of the Biden Maladministration are about to turn things on their head again, and hurt those who work hard to maintain their financial reputation. Here are the details from Fox News:
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.”
This sounds like something dreamed up by one of the leftist incompetents that the Worst President* in American history Joe Pedo Biden has been hiring. It was probably someone who doesn’t know how to manage their finances and has a miserable credit rating.
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.”
The last time Freddie and Fannie tried something like this, we ended up with the 2008 economic fiasco and 8 years of the second worst president in American history.
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.
Umm, that isn’t the way it’s supposed to work. Unfortunately, these people have a higher rate of defaulting on their loans, hence they are a greater loan risk. Now the good news for people in this situation is, if they make their payments and get their credit ratings up, they can refinance and get a better deal. Needless to say, that isn’t how the Moonbats and Liberal deadbeats see things.
Federal Housing Finance Agency Director Sandra Thompson said the new rules are designed to “increase pricing support for purchase borrowers limited by income or by wealth” and comes with “minimal” fee changes.
I can’t find much about this Sandra Thompson person, other then she’s been at the FHA since 2013 and was appointed by Dementia Joe. I did find her bio on the agency web site, and I don’t see anything about working in the Dreaded Private Sector being mentioned.
Currently, we’re seeing mortgage rates at the highest levels in quite a while. Add to that a shortage in new homes and prices are also way up as well. Of course, one of the reasons for the high sale value is the inability of builders to build new homes in many locations due to zoning issues. (Some are legitimate, many or more along the lines of NIMBY)
Add to this the Maladministration’s plans to intrude into local cities and towns and force zoning changes for low income housing and blocking the construction of single family homes and you can see why people are having trouble buying homes. Then of course you have all those college grads with degrees that aren’t worth the paper their printed on with 6 figure debt. I suspect this is who these changes are aimed at. These are the idiots who vote Democrat.
I suspect there will be a legal challenge to this, and the housing market will continue to contract. These “Brilliant” ideas by the Good Idea Fairy never work out the way the moonbats expect. Of course, they will deny their idea was bad and they will blame everyone else and racism, sexism and every other ism they can come up with. The next President is going to have a lot of work ahead of him to clean up the mess this maladministration is going to leave behind.
Thatisall
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