Communism is in full force in the Biden Administration.
The Washington Times reported yesterday on the Biden gang’s efforts to force borrowers with good credit scores to cover a portion of poor credit borrowers’ loans.
Homebuyers with good credit scores will soon encounter a costly surprise: a new federal rule forcing them to pay higher mortgage rates and fees to subsidize people with riskier credit ratings who are also in the market to buy houses.
The fee changes will go into effect May 1 as part of the Federal Housing Finance Agency’s push for affordable housing, and they 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.
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.
Newsmax reported on this as well and says that this couldn’t come at a worse time.
Mortgage lenders and real estate lenders are opposed to the new fees and say they will confuse and frustrate homebuyers, who will view them as penalties for building good credit.
They also say the additional costs could not come at a worse time, after a year in which the Federal Reserve has raised interest rates at the fastest pace since the 1980s, lifting mortgages above 6%.
At the same time Biden is increasing rates to curb the 40-year-high inflation, the price of housing is dropping at its fastest rate since 2012.
House prices suffered their biggest annual drop since 2012 as rising mortgage rates deterred would-be buyers from moving.
The median US property is now worth $400,528, down 3.3 percent from a year ago, according to data from real estate brokerage Redfin.
Boom towns like Boise, Idaho, and Austin, Texas – which saw values shoot up during the pandemic – underwent the steepest losses.
At the same time that rates are at their highest rates since 2008 and housing prices are falling the most in a decade, the Biden gang decides to take money from disciplined homeowners to give to the undisciplined.
This administration is a nightmare.
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