A new Biden administration mortgage rule set to take place on May 1 will force loan applicants with good credit to pay higher fees and subsidize applicants with poor credit in the name of "equitable" access to home ownership.
"Basically it is redistribution," Fox Business anchor Maria Bartiroma explained Thursday morning. "What you're doing is you are redistributing high risk mortgages and high risk loans."
"This is what we did back in 2005 and 2006 which led to the biggest blow off ever in terms of the housing market and took us down the road of the worst financial recession in a generation," she continued. "Basically what you have going on is larger down payments and credit scores to redistribute risky mortgages so those people with a strong and good credit score actually pay the bill for the mortgages that are much riskier for those people who don't have that kind of credit score."
"REDISTRIBUTION OR YOU COULD CALL IT SOCIALISM" - @MariaBartiromo
— America's Newsroom (@AmericaNewsroom) April 20, 2023
Mortgage fee rules quietly get overhauled, resulting in discounted rates for riskier-credit homebuyers & forcing higher-credit homebuyers to foot the bill...@BillHemmer @DanaPerino pic.twitter.com/VolYIQjXUU
This is a housing crisis in the making and one former Obama advisor David Stevens is calling a terrible idea.
WATCH: Biden rule will redistribute high-risk loan costs to homeowners with good credit.
— America Reports (@AmericaRpts) April 20, 2023
David Stevens, former Federal Housing Administration Commissioner, joins. pic.twitter.com/cZPsrrfHzR
“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 worried Arizona-based mortgage loan originator told The Post.
“It’s unprecedented,” added David Stevens, who served as Federal Housing Administration commissioner during the Obama administration. “My email is full from mortgage companies and CEOs [telling] me how unbelievably shocked they are by this move.”