We are Now Seeing Their “Equity” Plan Coming to Fruition in a New Redistribution of Wealth Scheme
Homeowners with a credit score of 650 or higher may face unwelcome news due to a new federal rule that will change the way home mortgages are repaid. The rule, which goes into effect on May 1, requires homeowners with good credit scores to pay higher mortgage rates and fees to help subsidize riskier borrowers who are in the market to buy a home.
The new rule is known as a Loan Level Adjustment. Read about it yourself, here.
Seemingly, the purpose of the rule is to redistribute income to reduce poverty by decreasing “inequality.” Or, probably more in line with their new ideology, to reduce “inequity.” Essentially, the formula looks at credit scores and interest rates as another source of new revenue that’s transferred to people with riskier credit who want to buy a home.
This new rule has nothing to do with compassion or kindness. It is an otherwise straightforward income redistribution scheme. The Federal Housing Finance Agency is imposing this rule to promote more affordable housing, but it may have negative consequences for those with high credit scores.
All lending institutions in the nation will be affected, and Fannie Mae and Freddie Mac will be in charge of implementing the loan price adjustments. This means that homeowners with high credit scores will now have to pay higher mortgage rates and fees to fund prospective home buyers with higher-risk credit reports.
Industry experts predict that homeowners with a credit score of 680 or higher, who are considered a good loan risk, may pay about $40 per month more on a home loan of $400,000. Additionally, if a down payment of 15 to 20 percent is made, they will face larger fees than those with credit scores below 680.
People with high credit scores should be rewarded for their financial achievements, not punished. This new rule could have serious implications for those with good credit scores, and it remains to be seen how it will impact the housing market in the long run.
This is just an extension of the 2008 problem the government and elites also caused, except add in the obvious “we don’t give a sh*t anymore” attitude. I’m sure this fits in somewhere between ESG Social Credit Scores and CBDC’s (Central Bank Digital Currencies).
