Say this about Joe Biden — just when you think he could not possibly be more unglued, loopy, and dangerous for the future of this country, the 80-year-old reaches into his political bag of tricks and finds something more shocking. Welcome to America in 2023, where your president’s priorities are punishing hard-working people with good credit and ensuring kids have ample access to change their sex if they want to.
Here’s the latest Onion headline that actually is oh, so, true — Biden and company want good-credit home buyers to pay more monthly to subsidize the costs for high-risk buyers looking to own a home. I believe the definition of socialism is embedded in that phrase somewhere.
Oh, and this isn’t some weird trial balloon — it’s happening. Starting in May, and economists much smarter than Biden and his crew are worried about the impact on the economy. Here’s what Mitch Rochelle told Fox Business.
“It’s bizarro world. That fee that’s charged, PMI, which is personal mortgage insurance, that fee that FHA [Federal Housing Administration] charges is intended to punish those with lower credit scores and riskier loans to basically level the playing field from a risk perspective. Well, what are we doing? We’re doing the opposite.”
Of course, we are. Here’s what Mark Tepper, CEO of Strategic Wealth Partners, told the media.
“We mentioned the student loan issue. Cab drivers who never went to college are subsidizing that student loan debt, and in this situation, this Biden administration more and more often, they are making decisions to reward bad decisions.”
Here are some of the real numbers, according to experts. A borrower with a credit score of 680 will be paying $40 more monthly on a mortgage in the $400K neighborhood. This affects any home buyer, whether it’s a first-time mortgage or a seasoned investor purchasing his 20th property.
Here are more specifics of the financial penalty you will pay for having good credit (read that sentence out loud a few times to grasp how preposterous it is). If you have a FICO score of 620, you will get a 1.75% fee discount on your mortgage rate. On the flip side, an excellent score of 740 means you will pay a 1% fee for your efforts.
Utter and complete, head-scratching madness. Here’s another great quote by Tepper that sums it up pretty well.
“That’s not the way you grow as a country, as an economy, by essentially saying, ‘Hey, if you spent recklessly, you lived above your means, and you stopped making your payments on time, have no fear. Someone who’s done it the right way is going to pay for you.’ That’s not what capitalism is all about, and it puts us in a situation where there’s no consequences when you make bad decisions.”
Add comment