Joe Biden has come up with another great idea to take money out of the pockets of people that have done the right thing their entire lives.
Instead of being rewarded, they are going to get penalized when they apply for a mortgage.
I kid you not, Biden wants to redistribute higher interest rates for people with bad credit to those with good credit.
Thanks, Joe
So, this is how it will work.
If you were to apply for a mortgage of about $500,000, which is reasonable in today’s market, you would end up paying about an extra $50 per month than you usually would so Joe can lower the payment for people on bad credit.
What can you do with $600 per year?
Two car payments? Groceries for two months? A month of your health insurance?
If you had a 20-year mortgage, that would cost you a total of $12,000 over the course of your mortgage.
Literally, just walking up to some random person you never met in your life and handing them a check for $12,000 of YOUR money.
Ian Wright, a senior loan officer at Bay Equity Home Loans, stated, “The changes do not make sense. 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.”
Even Democrats think this is a bad idea.
David Stevens, a former commissioner of the Federal Housing Administration during the Obama administration, wrote, “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.
“To do this at the onset of the spring market is almost offensive to the market, consumers, and lenders.
“Why was this done? The answer is simple, it was to try to narrow the gap in access to credit, especially for minority home buyers who often have lower down payments and lower credit scores.
“The gap in homeownership opportunity is real. America is facing a severe shortage of affordable homes for sales combined with excessive demand causing an imbalance.
“But convoluting pricing and credit is not the way to solve this problem.”
Unless something is done to stop this idiocy, the rule goes into effect on May 1.
Source: Fox News
