New fee on mortgages

[zelmo]

I heard that a new fee is set to be imposed starting on May 1 on those with good credit scores to subsidize fees charged to those with low credit scores. Does anyone know if that is only for new mortgages or does it apply to all that are on the books?

[juice780]

Awsome. I get punished for being responsible and working hard.

[C130]

Well, what would anyone expect! It’s not surprising.

[Bullet 250]

That will bring lawsuits

[tcesni]

Reference?

[brnzbaklvr]

That is why you have to shop around for mortgages and other loans. The mortgage industry is highly competitive so there are always opportunities if you have good credit..

[castforcash]

Bad credit, higher insurance premiums, good credit higher mortgage costs. You just can't make this shit up....

[jp71291]

This applies to new mortgages and is total bull. In the USA, you now get punished for doing the right thing and praised for doing the wrong thing.

[castforcash]

That is why you have to shop around for mortgages and other loans. The mortgage industry is highly competitive so there are always opportunities if you have good credit..

Has nothing to do with rates, they are imposing fees on those with good credit.

https://www.newsweek.com/biden-raise...rowers-1795700

[janky]

That is why you have to shop around for mortgages and other loans. The mortgage industry is highly competitive so there are always opportunities if you have good credit..

.....and all of those opportunities will be assessed this "equality" fee.

[RangrSkipr]

Doesn't seem right does it. Fannie and Freddie doing their best to put people in homes they can't afford. Did they not learn anything from the 07 - 08 housing crisis? Only now, you with your good credit are helping to subsidize it

https://nypost.com/2023/04/16/how-th...h-good-credit/

[BuzzB8]

Is this being done by executive fiat?

[janky]

Reference?

https://www.washingtontimes.com/news...ike%20payments

[printman71]

Is this being done by executive fiat?

yes

[MichPhoenix77]

Reference?

https://nypost.com/2023/04/16/how-th...h-good-credit/

[janky]

I have a feeling this will end up in the courts and be struck down.

[C130]

Well, the great news is it won’t affect most here on BBC, they pay cash.

[MichPhoenix77]

Never thought when I started out in life I would be punished for doing what is right. But here we are

[castforcash]

I have a feeling this will end up in the courts and be struck down.

I hope your right! Blatant misuse of power to penalize the financially responsible.

[zelmo]

Doesn't seem right does it. Fannie and Freddie doing their best to put people in homes they can't afford. Did they not learn anything from the 07 - 08 housing crisis? Only now, you with your good credit are helping to subsidize it

https://nypost.com/2023/04/16/how-th...h-good-credit/

Thanks for the link. I haden't found the details.

Under the revised LLPA pricing structure, a home buyer with a 740 FICO credit score and a 15% to 20% down payment will face a 1% surcharge – an increase of 0.750% compared to the old fee of just 0.250%.