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

[Harpy Eagle]

Punishing poor people for being poor doesn’t seem right either.

They are not being punished.

 

[sealybobo]

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.

Stop saying you don’t want the government interfering. If they didn’t you’d be paying much more. We all would. Government is the referee. They fix what’s broken.

 

[sealybobo]

Bull. I had a great credit score before I was out of my 20's

So you must have used a credit card? Had a loan for years? How did you get a good credit score?

 

[pknopp]

Stop saying you don’t want the government interfering. If they didn’t you’d be paying much more. We all would. Government is the referee. They fix what’s broken.

I wouldn't be doing anything as I do not have a mortgage. I explained why.

 

[sealybobo]

So what? Everyone knows this.

It is not difficult to build a great credit score.

I helped a young guy I know increase his credit score from 500 to 700 in less than 2 years with nothing but a $500 secured credit card and some strict budgeting.

All I’m saying is if before people were paying $100 more I’m ok with giving them a $50 break and raising our costs $50 so everyone pays the same.

It would be great if they let everyone pay $100 less but they’ll never do that right?

 

[JGalt]

What is happening with this country? Work hard, save up money, pay your bills, and you are in essence penalized and paying for the lesser qualified homebuyer. Redistribution of wealth.

From the Yahoo article:
"For example, a person with a 620 FICO score and a down payment of 5% gets a one and three-quarter fee discount on a 30-year mortgage. But a person with a FICO score of 740 or above, with 15%-20% down, will see an increase of 75% in fees from the current levels.
And this applies to people of all income levels."

“They’re redistributing the wealth if you will amongst the many to try and even the playing field for all the borrowers,” Brown said.

Buyers with good credit will soon start paying higher mortgage rates

Impending changes to federal rules on mortgage fees will mean high credit scores no longer make for better mortgage rates.

www.yahoo.com

"They just made it just a tad bit worse": What new rules on mortgage rates mean for those with high credit scores

In its announcement earlier this year, the Federal Housing Finance Agency said the changes are designed to level the playing field and empower buyers from marginalized communities to compete in the hot market.

www.cbsnews.com

'It's going to hit the consumer hard': Those with higher credit scores may pay higher mortgage fees

Beginning May 1, some people with higher credit scores may actually end up paying a higher fee.

www.cbsnews.com

Great! Let's have another Housing and Mortgage crisis like the Democrats caused last time. If we're lucky, it'll turn into another great recession like the one GW got blamed for, even though the Democrats caused that.

It will be forever known as the Biden Recession. Anything to make this "president" look bad is alright with me. Because like Obama said, "Don't underestimate Joe's ability to fuck things up." So bring it on.

 

[Blues Man]

So you must have used a credit card? Had a loan for years? How did you get a good credit score?

I got a secured credit card from a credit union with a $500 limit. I used that card for everything I bought that I would have paid cash for and went to the bank every week to pay the balance off. I never carried a balance to the next month and never paid a cent in interest.

In 6 months I was able to get an unsecured card with a $1000 limit but I didn't max it out and just kept paying the card off every week.

My credit score was something like 740 when I was 28

 

[Blues Man]

All I’m saying is if before people were paying $100 more I’m ok with giving them a $50 break and raising our costs $50 so everyone pays the same.

It would be great if they let everyone pay $100 less but they’ll never do that right?

People were all paying the same mortgage fees so now you have the people who are the highest risk of not paying their mortgage getting a break while the people who are less of a risk are having to pay more

 

[pknopp]

Great! Let's have another Housing and Mortgage crisis like the Democrats caused last time.

Last time was a bipartisan quid pro quo.

I'll also note.

President Calls for Expanding Opportunities to Home Ownership

If we're lucky, it'll turn into another great recession like the one GW got blamed for, even though the Democrats caused that.

It will be forever known as the Biden Recession. Anything to make this "president" look bad is alright with me. Because like Obama said, "Don't underestimate Joe's ability to fuck things up." So bring it on.

It's sad how many are either ignorant of the facts or simply wishes to spin them.

 

[Harpy Eagle]

This credit score shit is bullshit.

I do agree the credit system is fucked up. The amount of total control over our lives we give these private companies is unlike anything else we allow.

Your credit score affects more than just your ability to get a loan and the rate, but also insurance rates, utility deposits and even getting a job. These private companies know more about us than even the Govt and we just allow it to happen.

 

[LibertyKid]

One thing I will say about this. I is bullshit that people with bad credit have to pay more. The people with the least money have to pay more? Just doesn’t seem fair. Everyone should pay the same.

It's risk. If you have bad credit, it means you haven't been financially responsible you are a higher risk to the bank loaning you the money. Makes perfect sense.

 

[Lisa558]

Because typically people with money have good credit scores.

This credit score shit is bullshit. Everyone should pay the same.

No, a bank should charge more to people who don’t pay their bills on time or otherwise mismanage their money. The bank is taking on more of a risk with them.

 

[Cellblock2429]

One thing I will say about this. I is bullshit that people with bad credit have to pay more. The people with the least money have to pay more? Just doesn’t seem fair. Everyone should pay the same.

/----/ Seriously? It's called risk. Who would you lend money to, someone with a great track record of paying his or her bills on time, or a dead beat?

 

[Blues Man]

No, a bank should charge more to people who don’t pay their bills on time or otherwise mismanage their money. The bank is taking on more of a risk with them.

This isn't even about that, mortgage fees were uniform because all they reflected was the costs of the bank for underwriting the mortgage. Now the fucking government wants to turn these fees that were the same for everyone into some "social justice" campaign

 

[Lisa558]

So you must have used a credit card? Had a loan for years? How did you get a good credit score?

I had a good credit score by my late 20s also. It wasn’t hard to do. I started with a $500 credit limit from Sears, and then moved on to a car loan. Within 5 years, I had established enough credit and earned enough of a salary to buy a studio condo.

 

[Lisa558]

/----/ Seriously? It's called risk. Who would you lend money to, someone with a great track record of paying his or her bills on time, or a dead beat?

Leftists have a very limited understanding of economics.

 

[JGalt]

Last time was a bipartisan quid pro quo.

I'll also note.

President Calls for Expanding Opportunities to Home Ownership




It's sad how many are either ignorant of the facts or simply wishes to spin them.

GW was a weak President who was just going along with the Democrats in Congress.

In case you haven't figured it out, that's the reason most Republicans view him with disgust.

How the Democrats Created the Financial Crisis

Hey, Barney Frank: The Government Did Cause the Housing Crisis

Who Was to Blame for the Subprime Crisis?

 

[LibertyKid]

I do agree the credit system is fucked up. The amount of total control over our lives we give these private companies is unlike anything else we allow.

Your credit score affects more than just your ability to get a loan and the rate, but also insurance rates, utility deposits and even getting a job. These private companies know more about us than even the Govt and we just allow it to happen.

I don't necessarily disagree with this. I remember, maybe a decade or more, China instituted some type of social "Credit" system that not only monitored your ability to pay bills, but what you bought, where you bought it from, and several other areas that created some type of social scoring system. You talk about Big Brother.

 

[Hang on Sloopy]

It's not breaking news as it's been covered 4-5 times already.

it is very breaking and should have 10 threads on it.....people who do the right thing have to pay for the lowest scum in this country..same thing happened in the mortgage crisis in 08 in a slightly different way

 

[Harpy Eagle]

I got a secured credit card from a credit union with a $500 limit. I used that card for everything I bought that I would have paid cash for and went to the bank every week to pay the balance off. I never carried a balance to the next month and never paid a cent in interest.

In 6 months I was able to get an unsecured card with a $1000 limit but I didn't max it out and just kept paying the card off every week.

My credit score was something like 740 when I was 28

My daughter is 28 and her credit score is pushing 800 or might even be above that now.

She has been fanatical out it since she left home. I remember when she was still in college she called me a in panic as she was 1 day late paying her power bill and she was afraid it would hurt her credit score.

She has one credit card, every time she is eligible for a higher credit limit she applies, her credit limit on her one card is now over 70 grand. She travels a ton for work and puts it all on her own card and then pays it off when she is reimbursed.