WaTimes: 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.” more here. h/t joe6pak
Community Reinvestment Act, part deux. No money down and they’ll loan you 110% of the price of the home. What could go wrong?
2008.
If you don’t Qualify, don’t qualify them by using other peoples money.
See, last time it led to a massive failure that effected the entire nation because it was overseen by the “wrong people”. This time will be different because the right people will be in charge.
When I’ve told people that last time, buyers didn’t have to provide any proof of income or even proof of employment, I was told that I was crazy.
“…new federal rule”…WTF? At least they managed to subsidize—and ruin— healthcare with some semblance of legislation. I reckon Congress wants no responsibility for anything anymore, except toothless investigations of the Biden syndicate. And dumping money in Ukraine. Just another indicator that we are no longer under the rule of law, but the law of rules instead.
So even with a cocaine habit that would kill a horse and my penchant for not using birth control resulting in 15 orders for child support, and given that I can’t work because I prefer to watch daytime television instead of going to a job, I can qualify to buy a house? Thanks brain-dead Biden administration.
“From each according to his abilities, to each according to his needs”
If I buy a house, I will pay cash for it. Like Obama, he will tack a sales tax on the property when it’s sold if you are a cash buyer. The good stewards of their money get penalized.
In a country run by criminals those who obey the law pay the price.
Hell, my wife and I have 850+ credit scores, and get denied for a new credit card. “too high revolving credit” is always the excuse we get. All we want to do is swap our 1% cashback card for a 2%. Never been late on a payment in over 23 years.
But it’s the same story. Things we’re stupid for paying that others don’t have to: credit cards, home loans, student loans, car loans and medical bills. WHY do we keep paying these things? I’M DONE.
Karl Marx is alive and thriving in the minds of the Biden Administration.
Another “hand out”, the plantation is over crowded while our manufacturing base and workforce is dwindling.
The beatings will continue until they have it all. Also known as slavery.
Discouraging the “bourgeoisie” (middle class) from buying homes.
Hmmmm……that plays nicely into the Agenda 2030 and 15 minute cities and the like.
SCOTUS needs to slap down all of these abuses of power by various agencies. Only Congress can pass tax laws – and regardless of terminology this is a tax.
Left Coast Dan
AT 9:00 AM
“SCOTUS needs to slap down all of these abuses of power by various agencies.”
NO STANDING.
And Obamacare is a tax, except for when its convenient to say it isn’t.
Now apply that to every other Federal agency that takes your money.
I have spoken.
(The words I have to or they’ll drop those pedophile pics of me).
the newest version of the pritzker plan
the housing market, and homebuyers, will suffer and conglomerates will buy up housing and rent it out
At some point, I think.., you’ve had enough of the pie..Barry Sortero
blow me, asshole
The SCROTUS is just as corrupt as the House, Senate, and White Hut.
And have been for over a hundred years, or more.
You will get no succor from them – they are enemies of America – damned and determined to destroy America and Western Civilization.
mortem tyrannis
izlamo delenda est …
I don’t see how the feds can force fees onto a private transaction and change these fees whenever they want. The executive has way too much power. Congress has given these agencies too much power under the guise they are trusted institutions with good intent.
Penalizing success and personal responsibility!
– maybe that’s a White thang…
Thirdtwin, we’ve gone full circle back to our founding as a nation where Lex Rex (the law is King) was instituted by our constitution to Rex Lex (the King is law) under King George the 3rd of England. This is nothing but a continuing recipe for tyranny under govt. rule and it stinks to high Hell. I know my Samuel Rutherford well of Lex Rex fame as I have a copy of it just like our founding fathers did when they created this great country with the law as King.
ChinaMoney Joe Biden is a known vulgar racist who uses every race under the sun for self-enrichment, including hiking mortage payments.
My daughter and son in law in Nashville are looking to buy a house at this moment and have found that it’s almost impossible to even afford a modest home and the high house payments they would have to pay. They’re frustrated as all get out right now because of this and all joey and the democraps and RINO’s do is make it even worse for them and any other first-time home buyers. And then he expects them to subsidize people who can’t afford to buy a house but are supposedly owed it (damned reparations) because of racism or some other politically correct bs.
We’re getting ready to apply for an equity loan, maybe I should rob a bank or something instead.
Bob
AT 11:06 AM
“We’re getting ready to apply for an equity loan, maybe I should rob a bank or something instead.”
Quit your job, dump your spouse, refuse to support your kids, attack police cars, and set cities on fire and we’ll talk.
Oh, also be Black or at least Brown.
Or we won’t.
We laugh at you Gringos because we get our insurance for free.
If you worked your ass off for decades to be able to live in a nice, safe, decent neighborhood, get ready to have new neighbors that hate your guts because you have white privilege. Get ready for loud, all-night parties with plenty of drugs, alcohol and front yard shootings. Be ready to replace the stuff that will start missing from your garage. Be ready to wake up and find your car missing. Be ready to have your young daughters targeted by dindo youts who have no other purpose other than to defile them.
I loved Fred Gwynn (AKA Herman Munster) playing a judge in the movie My Cousin Vinnie calling these miscreants as “youts.” It was hysterical and spot on.
Fuck, Joe Biden; what be you problem, boy?
@ecp: I have a Costco Citibabnk card. Apply for one through Costco. The Costco Anywhere Visa® Card by Citi earns an impressive 4% cash back on gas and EV charging purchases (at Costco or elsewhere) on up to $7,000 of spending a year. That translates to $280 back a year if you hit that limit.Mar 23, 2023
It’s nice to get $$$ back at the end of the year. I think I have a $10,000 limit. I pay it off as soon as I charge something. It’s a card worth having.
YOU will support the BUMS! Get used to it, you’ve been doing some bum support for years, now to the big time, full support for the idle in addition to the government parasites who are bleeding your future dry.
Accumulate three to six months food, medicine, cash and sundries you need to stay off work for three to six months, take a leave, unpaid, or quit your job. Don’t buy or sell on the taxed market for those months. Drop your tools and walk away July 4. See how they’re doing by October 1, if they aren’t squawking yet check in again in January.