🚫 Opposing the New Biden Administration Rule on Mortgage Subsidies 🚫
A new rule from the Biden administration is set to take effect on May 1st, forcing home buyers with good credit to pay more for their mortgages in order to subsidize loans for higher-risk borrowers. Experts predict that borrowers with a credit score of about 680 will pay around $40 more per month on a $400,000 mortgage, according to a Washington Times report.
Critics argue that this rule is unfair and overly complicated. Penalizing borrowers with larger down payments and higher credit scores doesn't seem like a sensible approach. The mortgage process is already overwhelming for many consumers, and adding more confusion is not helpful.
Federal Housing Finance Agency Director Sandra Thompson claims that the new rules aim to "increase pricing support for purchase borrowers limited by income or wealth," but opponents believe that manipulating prices isn't the right solution. While there is undoubtedly a gap in homeownership opportunity, particularly for low-income and minority borrowers, convoluting pricing and credit is not an effective way to address this issue.
America is indeed facing a severe shortage of affordable homes for sale, as well as excessive demand, resulting in an imbalance in the market. However, this new rule seems to be an inadequate and misguided attempt at solving a much larger problem.
If you agree that this rule is unfair and want to take action, please sign our petition to demand a fair and sensible approach to address the housing crisis: