Blog

There’s such a huge price to pay for having woke liberals run our government. Here we go again, with another example of how bad their policies are for America.

Have you heard what the Biden administration is doing to homebuyers with good credit? Those homebuyers will soon be forced to subsidize mortgages for other homebuyers who have lower credit scores.

Starting next Monday, if you’re a new homebuyer with good credit (above 680), and you apply for a mortgage backed by Fannie Mae or Freddie Mac – which guarantee the vast majority of all mortgages – then you’re likely to pay hundreds of dollars more in fees known as “loan-level price adjustments.” These fees will be even higher for those who put at least 20% down on their homes!

They're taking money from people with good credit, and using their money to subsidize mortgages for others with worse credit. It flies in the face of all logic.

•  It penalizes those who have made the choices necessary to achieve good credit, while rewarding those who have not.

•  It’ll make home ownership even less affordable for those who have demonstrated their ability to live within their means and pay their debts on time.

•  Using other people's money to subsidize loans for lower creditworthy borrowers adds tremendous risk and dysfunction to the housing market.

•  And on top of everything else, to further punish people who have saved for a larger down payment is even more reprehensible!

To understand how a rule like this would ever be considered, you have to get inside the mind of a liberal. (I know, I know, but just try.) Even when something is clearly wrong, dysfunctional, inappropriate, and unfair, none of that matters as long as they can claim it’s in the name of so-called “equity.”

For the rest of normal America, there is simply no universe in which this new Biden policy makes sense.