5/1/23.....Biden to hike payments for good-credit homebuyers to subsidize high-risk mortgages

[Lisa558]

Yep. And now when I move to Texas in 7 months, already gonna be dealing with interest rates x2 what I pay now, Biden is gonna further add to my monthly mortgage payments all because I've done the right things in life

Scary. I can’t think of a better way to destroy a country than by paying people to be irresponsible, which is what this is.

 

[1srelluc]

I noticed this morning that the lame-stream media is now picking-up on it. I did not lower myself to check MS-LSD but even CNN was giving it poor marks.

I still can't figure out where it came from.

 

[Silent Warrior]

This has always been the way of our government, punish the successful to reward, and buy votes from, the unsuccessful.

 

[WEATHER53]

Shared failure is pure liberal lunacy

 

[Harpy Eagle]

Glad I bought our house last year, this is just some sheer insanity.

 

[Invisibleflash]

Karl Marx would be proud of this new rule that fits right in with his philosophy of from each according to their abilities, to each according to their needs.
New homeowners will either be winners or losers in this new Biden Admin rule set to take effect on May 1 where those with good credit will pay more monthly to subsidize the extra risks involved by allowing bad credit risks to obtain a mortgage for less money down at a lower rate than they would qualify for otherwise.
Gee, that's a swell idea... except didn't we have a huge recession when the Affordable Housing Act forced lenders to offer crap borrowers 100% financing even though they'd never paid anyone back before?
I seem to remember this distinctly because it happened 15 years ago & almost crashed the world.
Let's not even talk about the fact the housing market has flipped because of the rising interest rates because we all know forcing more costs on the people that can actually afford a house will only make things better in these times of stagflation.

If you wanted to crash our country, what would you do differently than what the diaper dude has done in office?
I'd say this is just another stupid move but it's not once you realize the true agenda here.
Multiple bubbles about to pop & de-dollarization gaining steam- can't have a reset if it ain't broke first.

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 rules come as the housing market has struggled in the wake of multiple interest rate increases by the Federal Reserve.

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.

The rules come as the housing market has struggled in the wake of multiple interest rate increases by the Federal Reserve.

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.

Biden rule will redistribute high-risk loan costs to homeowners with good credit

A new federal rule will make borrowing for a home more expensive for those with high credit scores to subsidize loans to higher-risk borrowers.

www.foxnews.com

 

[SassyIrishLass]

The Biden administration wonders why they're viewed as lunatics

 

[Silent Warrior]

Well, the left claims to want everybody equal. Since they can't make everybody equally happy and rich, the only way they can achieve their goal is to make everybody equally unhappy and poor. That is of course except for the leaders who will remain happy and rich being more equal that everyone else.

 

[DBA]

Yep. And now when I move to Texas in 7 months, already gonna be dealing with interest rates x2 what I pay now, Biden is gonna further add to my monthly mortgage payments all because I've done the right things in life

You and Lisa558 just need to mess up your credit a little bit before getting a new mortgage. Sounds a little backwards doesn't it?

 

[Missouri_Mike]

Well, Bidumb and his left wing idiots re bound and determined to fuck up everything in the economy.

Here's the Awful Thing Biden Just Did to the Mortgage System

townhall.com

Let’s kill the housing market next!

 

[Lisa558]

You and Lisa558 just need to mess up your credit a little bit before getting a new mortgage. Sounds a little backwards doesn't it?

Yup. After 40 years of paying my bills on time, I’m going to have to stiff a few creditors. And THEN I will be rewarded with a less costly mortgage.

 

[DBA]

Yup. After 40 years of paying my bills on time, I’m going to have to stiff a few creditors. And THEN I will be rewarded with a less costly mortgage.

Just wait until they start using your voting record as the determining factor. Honestly, it doesn't seem that far-fetched given what is going on in this administration.

 

[JGalt]

That's exactly what the Democrats did last time. It caused the last Housing Mortgage Crisis that eventually turned into the recession we had under Bush. The Democrats caused it and then blamed GW for it.

 

[Missouri_Mike]

That's exactly what the Democrats did last time. It caused the last Housing Mortgage Crisis that eventually turned into the recession we had under Bush. The Democrats caused it and then blamed GW for it.

The amazing part is they think rich people will pay this. They won’t. So the subsidies will go out but the collections won’t be there to cover it. And yep, it will be just like last time.

 

[ReinyDays]

Only landlords will be able to afford to own homes ... so do pay your rent on time and in full please ...

 

[Dekster]

Well, Bidumb and his left wing idiots re bound and determined to fuck up everything in the economy.

Here's the Awful Thing Biden Just Did to the Mortgage System

townhall.com

Let’s kill the housing market next!

More or less they are window dressing that Fannie and Freddie don't won't to be stuck with a bunch more of upside down mortgages when the shit goes south. They are not doing this to help out anybody but the government.

 

[yidnar]

Biden to hike payments for good-credit homebuyers to subsidize high-risk mortgages

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.

The new fees will apply only to Americans buying houses or refinancing after May 1.

Lenders and real estate agents say the changes will frustrate homebuyers with high credit scores and homeowners seeking to refinance because the rule punishes them for their relatively strong financial positions.

“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 in the San Francisco Bay Area, told The Washington Times in an email message. “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.”

He said the rule will “cause customer-service issues for lenders and individual loan officers when a consumer won’t understand why their interest rate and fees suddenly changed.”

“I am all for the first-time buyer having a chance to get into the market, but it’s clear these decisions aren’t being made by folks that understand the entire mortgage process,” Mr. Wright said.

The new fees “will create extreme confusion as we enter the traditional spring home purchase season,” said David Stevens, a former head of the Mortgage Bankers Association who served as commissioner of the Federal Housing Administration during the Obama administration.

“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,” Mr. Stevens wrote in a recent social media post. “To do this at the onset of the spring market is almost offensive to the market, consumers, and lenders.”
The housing market has been hit hard by a series of Federal Reserve interest rate hikes that have driven mortgage rates above 6%, roughly double the level from early 2022.

Oh look, it starts May 1.....Commie redistribution of wealth day.

Let's see....$40 per month for 30 years = $14,400 over the life of the mortgage.

i dont believe Biden dreamed up this crap ... nope ..its got all the signs of a Rice, Jarrett, Obama crap fest .

 

[1srelluc]

Just wait until they start using your voting record as the determining factor. Honestly, it doesn't seem that far-fetched given what is going on in this administration.

I'm glad Virginia does not force party registration to vote.

 

[Markle]

First I will note that F&F should have been crushed long ago.

Second I will note that programs like this will only help the finances of all home owners. Take a large segment of the market out of the market and what happens? The prices of houses collapse.

Now, I also support that but I doubt many others do. For most a small bump in their payment will be preferred over the value of their home dropping.

 

[Markle]

We have been subsidizing banks/loans for years and years now.

How?