Biden Administration experts took a break from wrecking the country to devise another way to punish good behavior. They’ve announced rules that will require people with bad credit to get better home loan interest rates and those with good credit to pay higher rates.
On Wednesday, The Washington Times reported that starting May 1, Americans purchasing a new home or refinancing their existing mortgage can expect to pay higher mortgage rates and monthly fees if they have a higher credit score. Americans with lower credit scores and smaller down payments will be given better rates. In other words, Biden is essentially stealing from the rich to give to the needy by adjusting the fees on loan-level price adjustments.
No one thinks this is a good idea.
- “The changes do not make sense,” senior loan officer at Bay Equity Home Loans Ian Wright told the Times. “Penalizing borrowers with larger down payments and credit scores will not go over well. 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.”
- “It’s going to be a challenge trying to explain to somebody that says, ‘I worked my whole life for high credit and I’ve put a lot of money down and you’re telling me that’s a negative now?’ That’s a hard conversation to have,” one expert told the Post.
- “It’s unprecedented,” David Stevens, Federal Housing Administration commissioner under President Barack Obama, told the Post. “My email is full from mortgage companies and CEOs [telling] me how unbelievably shocked they are by this move.”
And no, this new rule will not punish the one-percenters, especially the political and donor class. Not only can they afford it, they have the means to bypass these sorts of rules leaving hard-working Americans, many of whom have good credit but are not the least bit wealthy, to pay an unnecessary price, not just on the interest rate.
Leveraging high-risk loans to people without the ability to pay them inspired the investment tomfoolery that crashed the economy in 2008. We’ve got the current fiat money situation, a recession disguised as nothing more than a downturn, and a domestic war on our infrastructure, resources, and supply chain. The impending financial doom could result in significant economic casualties.
But since it won’t be “them,” why would they care? Destruction is, after all, the goal.
Maybe history will be kind enough to label Biden it has Nero; Nero fiddled while Rome burned.
Biden licked his chocolate chip.
