Housing Agency Rules Will Force Homeowners With Good Credit to Subsidize High-Risk Borrowers

Single-family home sold for $570,000, in Fishers, Ind. Courtesy of the Perrey Home Team of Realty One Group New Horizons in Indianapolis, IN

The Biden administration will soon punish Americans with high credit ratings to pay more for their mortgages to subsidize loans for homebuyers with lower scores.

Starting May 1, Americans purchasing a new home or are refinancing their existing mortgages will have to pay higher mortgage rates and monthly fees if they have a higher credit score, The Washington Times reported on April 18.

Consumers with lower credit scores and less money for a down payment will be given better mortgage rates than they otherwise would have in a form of wealth redistribution by adjusting the fees on loan-level price adjustments.