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

[Lisa558]

Your mortgage rate will not be higher. I am against this fee, but it is still not big enough that you will pay more than someone with a bad credit score.

It does not help the discussion to misrepresent what is happening

I won’t be getting the discount that people with poor credit will. Thus, my borrowing costs will be higher. It does not help the discussion to hide behind words.

 

[Lisa558]

As I understand, this is impacting loans backed by Freddie and Fanny, gov't backed loans. So FHA (First time home buyer), USDA Rural Development, VA, etc.,
A traditional loan won't be affected.

That’s good news, as far as I am concerned. But for others, such as first-timers going through FHA, those who have been responsible will still be subsidizing those who are irresponsible.

 

[Hellokitty]

Got a free Credit Karma account for doing my taxes through TurboTax, and found out my credit is as 820. Pay off my car loan on time, and use my credit card for things like trips and dinners only, and pay off every month, or close to every month.

Long time away from my 30's where I kept a balance like an idiot.

I keep explaining to my husband even though we pay off credit cards each month we are still caring a balance throughout the month. Our credit is still in the high end of the excellent range so it really doesn't make much of a difference.

 

[Ralph Norton]

even though we pay off credit cards each month we are still caring a balance throughout the month.

Which does not accrue interest.
Why does this concern you?

 

[Toddsterpatriot]

Let me explain what democrats are doing. Income inequality has grown way too much in the last few decades. The rich keep getting richer. The gap keeps getting bigger.

This is just one of many things democrats can do to shrink the gap between rich and us.

Helping less qualified buyers get a house worked so well last time.

 

[sealybobo]

/------/ "It's bullshit to charge me more interest or fees because I'm poor and charging the rich less because they have great credit scores."
You're confused. Banks don't charge poor people more, they charge people with bad credit more than those with good to excellent credit. You can be either rich or poor with bad credit. A poor person can live within his or her means and still have good credit.

Seems like a class system. Unfair. I get it. We all play the same game. I try to keep my credit score low too. But something shady about this practice. Something I don't like about it.

Let me look....

Yup, I knew it



And so it doesn't surprise me why Republicans are arguing in defense of this. They serve the wealthy and corporations. This is just another example of it.

 

[sealybobo]

Helping less qualified buyers get a house worked so well last time.

Who knew Republicans were going to go along with corporations on sending 1 million of our highest paying manufacturing jobs overseas in the 2000's. Things were great in the 90's. Bush dropped the ball big time. Squandered Clinton's surplus and everything.

The Bush Great Recession was the biggest since the Great Depression.

 

[Toddsterpatriot]

I don't know what it would cost on average. Now again, as I said in earlier threads I do NOT support the government interfering because they have screwed things up so badly in the past but let's say it costs a homeowner even $240 a year. The value of their home will fall far more than that when the market shrinks because others can't afford to get into a home.

Now that should simply just be the way it is but IMO most complaining would be happy with the little extra a year when faced with the alternative of falling home prices.

but let's say it costs a homeowner even $240 a year. The value of their home will fall far more than that when the market shrinks because others can't afford to get into a home.

How much will the value of their home fall when the unqualified buyer defaults
and he goes into foreclosure?

 

[pknopp]

but let's say it costs a homeowner even $240 a year. The value of their home will fall far more than that when the market shrinks because others can't afford to get into a home.

How much will the value of their home fall when the unqualified buyer defaults
and he goes into foreclosure?

I said I didn't support any of it.

 

[Ralph Norton]

I try to keep my credit score low too.

Sounds about right.

 

[sealybobo]

Sounds about right.

Actually, I bet my credit score would be higher if I still had a mortgage or a payment on my pontoon. My mortgage is paid off and I paid cash for the pontoon. So I believe my credit would be better if I had some payments. Being "off the grid" is not good for your credit rating. Is that true? My grandmother had $50K in the bank but couldn't get a credit card because she didn't have any credit.

 

[Toddsterpatriot]

Who knew Republicans were going to go along with corporations on sending 1 million of our highest paying manufacturing jobs overseas in the 2000's. Things were great in the 90's. Bush dropped the ball big time. Squandered Clinton's surplus and everything.

The Bush Great Recession was the biggest since the Great Depression.

Sealy-The housing crisis was awful!!!

Also Sealy-Let's do it again!!!

 

[Toddsterpatriot]

I said I didn't support any of it.

You said you didn't support it but helping unqualified buyers will increase home values.
How'd that work in 2008?

 

[Mac-7]

Who knew Republicans were going to go along with corporations on sending 1 million of our highest paying manufacturing jobs overseas in the 2000's. Things were great in the 90's. Bush dropped the ball big time. Squandered Clinton's surplus and everything.

The Bush Great Recession was the biggest since the Great Depression.

The villain was bill clintion who opened our market to cheap chinese products

 

[sealybobo]

Its not a punishment for being poor its because those with bad credit don't make payments on time. If you can't make payments don't borrow money

Wait. So you charge me a higher rate because other people don't make payments on time? So I'm paying for other people's bad behavior? Just because, for whatever reason, my credit score is the same as those people who tend to be late on payments? What ever happened to innocent until guilty? You know what I mean.

Now tell me this. If you are charging me extra because I'm in a category of people who tend to be late on payments, how is adding on $30 more a month a good idea? Seems like now you are making it even harder for them to make their payments.

This should be outlawed. A bill should be passed in congress stopping this practice. Of course Republicans will defend it.

 

[pknopp]

You said you didn't support it but helping unqualified buyers will increase home values.
How'd that work in 2008?

It will. Temporarily and that's all people care about.

 

[sealybobo]

You said you didn't support it but helping unqualified buyers will increase home values.
How'd that work in 2008?

Are you expecting Trump to trash the economy again? Ever notice that Republicans always hand Democrats a shitty economy? Bush 1 and 2 and Trump handed Biden a pandemic he was not handling well.

 

[ActionJackson]

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.

Socialism in action. Take from the doers and give to the takers.

 

[sealybobo]

The villain was bill clintion who opened our market to cheap chinese products

Sorry but look it up. Bush 1 invented NAFTA and free trade with China. Probably started on Reagan's watch. You cons can't pretend you were against it. You sure weren't in the 2000's. You loved Walmart and the cheap shit they were getting from China. You argued it made shit affordable and FREE TRADE and all that shit in the 2000's. Hell you even argued for illegals. They were only here doing jobs Americans won't do. Remember you said that? And Bill Clinton put labor and environmental protections in NAFTA before he signed it. Bush/Chaney removed those protections.

 

[sealybobo]

Socialism in action. Take from the doers and give to the takers.

Libertarianism doesn't work either.