Biden Rule Will Redistribute High-Risk Loan Costs To Homeowners With Good Credit
Biden Rule Will Redistribute High-Risk Loan Costs To Homeowners With Good Credit
View Source | April 20, 2023 12:27 pm
- 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.
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