Via SBINSIDER | April 30th, 2023
The Biden Administration has announced that henceforth if you are a responsible person with excellent credit, your fees for obtaining a mortgage will increase while those who are less financially adept will see their fees lowered. You read that right, Biden is pushing his equity agenda into homebuying.
This directly affects prospective homebuyers in SaddleBrooke as the average age of buyers here are nearing retirement and generally have had successful careers which is highly associated with great credit and responsible choices. (It must be noted that a higher than average number of buyers into SaddleBrooke pay all cash for their homes due to equity earned elsewhere.) But if you are a borrower, it will likely cost you more.
According to Sanjay Wangle, the Senior Vice President of Governmental Affairs for the California Association of Realtors, said fees are increasing for certain “high” borrowers with a credit score above 680. The changes are part of a Biden Administration rule intended to provide equitable access to homeownership. First-time homebuyers with high credit scores would pay more under this new rule.
Before May 1, if you have a credit score of 740 or higher, on a $500,000 loan, you will pay 0.25% fee, which is $1,250. After that date, you could pay as much as .375% – or $1,875 – on that same loan.
People with lower credit scores will pay a lower rate.
This policy is a continuation of the assault on people of virtue who think paying your bills on time and in full is a good thing personally and is fundamental to a functioning civil society. Consider, before the previous election, Biden was all over with his college loan forgiveness program which he knew was unconstitutional but went ahead anyway and suckered voters into thinking he could do it, and therefore got votes from the slackers, mostly under 30, who willingly went into excessive debt for a worthless college degree.
Congress likely has some leverage with this fee proposal in that FANNIE MAE and FREDDIE MAC have been in receivership since the 2008 housing collapse and a bill has been introduced in the House to repeal the change. The Democrat controlled Senate is unlikely to go along.