There is plenty of backlash over the new Federal Housing Finance Agency policy that makes people with good credit pay more for mortgages.

The new policy is aimed to help low-income borrowers afford their monthly mortgage payments. In most cases, low- to median-income first-time home buyers pay less, while homebuyers with good credit make extra payments to help higher-risk borrowers pay a monthly mortgage.

According to a press release, Louisiana State Treasurer John M. Schroder decries the policy in a letter to President Joe Biden and Federal Housing Finance Agency (FHFA) Director Sandra Thompson. “This is the most absurd thing I’ve seen in a long time,” said Schroder. “It flies in the face of the American dream where if you work hard, you can achieve anything. In this case, if you do those things, your dream of home ownership will just cost you more.”

State Treasurer John M. Schroder decries backward policy to punish those with high credit scores

The letter was co-signed by 33 state treasurers and financial officers. The letter states the policy will take money away from the people who played by the rules and did things right – including millions of hardworking, middle-class Americans who built a good credit score and saved enough to make a strong down payment.

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