{"id":1919104,"date":"2023-04-25T17:42:09","date_gmt":"2023-04-25T21:42:09","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/homebuyers-with-good-credit-could-pay-to-boost-black-homeownership-under-biden-rule\/"},"modified":"2023-04-25T17:43:16","modified_gmt":"2023-04-25T21:43:16","slug":"homebuyers-with-good-credit-could-pay-to-boost-black-homeownership-under-biden-rule","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/homebuyers-with-good-credit-could-pay-to-boost-black-homeownership-under-biden-rule\/","title":{"rendered":"Homebuyers With Good Credit Could Pay To Boost Black Homeownership Under Biden Rule"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fhomebuyers-with-good-credit-could-pay-to-boost-black-homeownership-under-biden-rule%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1919104&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div>\n<p><h2>Is President Biden Making Your Mortgage More Expensive?<\/h2>\n<\/p>\n<figure><figcaption>President Joe Biden \/ Getty Images<\/figcaption><\/figure>\n<\/div>\n<div>\n<p>Are you one of the many Americans who have worked hard to maintain good credit? If so, you may be in for an unpleasant surprise. A new Federal Housing Finance Agency rule set to take effect on May 1 will increase monthly mortgage fees for borrowers with good credit scores. The extra fees will be used to subsidize individuals with bad credit scores.<\/p>\n<p>The administration claims the change will help support low-income home buyers. But others say it&#8217;s part of the White House\u2019s ongoing effort to remedy racial differences in home ownership.<\/p>\n<p>Whatever the rationale, the result is clear: Borrowers with strong credit will likely wind up paying thousands of dollars more over the course of their mortgages, thanks to the Biden administration\u2019s policy.<\/p>\n<p>Here\u2019s how the rule change will work:<\/p>\n<p>When you take out a mortgage, the interest rate you pay generally reflects two things: the federal funds rate set by the Federal Reserve and something called a loan-level price adjustment. The latter functions like a car insurance premium that goes up after you\u2019ve had an accident.<\/p>\n<p>In short, riskier borrowers with low credit scores or income pay more each month for their mortgage. These borrowers will still pay more after May 1 but <a href=\"https:\/\/singlefamily.fanniemae.com\/media\/9391\/display\" target=\"_blank\" rel=\"noopener\">much less than they paid before<\/a>. In order to compensate for that lost revenue, borrowers with strong credit will see their monthly increase to roughly $40 a month on a $400,000 mortgage. That\u2019s an extra $14,400 over the course of a standard 30-year mortgage.<\/p>\n<p>The Federal Housing Finance Agency regulates federal mortgage guarantor giants Fannie Mae and Freddie Mac\u2014which are both quasi-government agencies\u2014meaning those fee hikes will be reflected for most consumers who seek to take out a mortgage with a bank. A majority of mortgages are eventually secured by Fannie Mae and Freddie Mac, resulting in the two companies holding tremendous influence over conventional mortgage rates.<\/p>\n<p>According to former Federal Housing Finance Agency director Mark Calabria, shaping the policy to benefit anyone with lousy credit lets the Biden administration avoid offering sweetheart deals to minorities, which would violate federal law.<\/p>\n<p>&#8220;The Biden administration is definitely trying to create more of a cross subsidy between good credit and bad credit, that\u2019s the intent,&#8221; Calabria said. &#8220;They are essentially trying to discriminate by race within the legal rules they have and minorities tend to have lower credit scores.&#8221;<\/p>\n<p>A review of the Federal Housing Finance Agency\u2019s recent rule proposals make it clear that increasing minority\u2014in particular black\u2014home equity is at the heart of a variety of agency initiatives.<\/p>\n<p>On April 19, the Federal Housing Finance Agency proposed <a href=\"https:\/\/www.fhfa.gov\/SupervisionRegulation\/Rules\/Pages\/Fair-Lending-Fair-Housing-and-Equitable-Housing-Finance-Plans-Proposed-Rule.aspx\" target=\"_blank\" rel=\"noopener\">a series of rules<\/a> targeted at &#8220;Fair Lending, Fair Housing, and Equitable Housing Finance Plans.&#8221; Most of the proposals would &#8220;codify existing FHFA practices&#8221; but also add requirements for lenders related to increasing minority homeownership. Some objectives of the rules include &#8220;reducing the homeownership gap for an underserved community&#8221; and &#8220;reducing disparities in negative outcomes for an underserved community in servicing, loan modifications, and loss mitigation.&#8221;<\/p>\n<p>In those proposals, the Federal Housing Finance Agency states that part of the reason it wishes to boost minority homeownership is to generate wealth for those communities.\t<\/p>\n<p>Because lenders heavily rely &#8220;on certain credit attributes in the current mortgage underwriting process,&#8221; black home loan applications are denied at a higher rate than every other ethnic group in the country, including Hispanics and native Indians. Neighborhoods with higher concentrations of blacks also see lower home prices, the Federal Housing Finance Agency <a href=\"https:\/\/www.fhfa.gov\/SupervisionRegulation\/Rules\/RuleDocuments\/Fair%20Lending%20Fair%20Housing%20Proposed%20Rule%20for%20Fed%20Reg_Web%20Vsn.pdf\" target=\"_blank\" rel=\"noopener\">notes<\/a>.<\/p>\n<p>&#8220;Their view is you didn\u2019t build that credit. It\u2019s part of their general belief that credit scores are due to societal facts out of their control,&#8221; Calabria said. &#8220;It\u2019s legitimate for people to be kind of offended and angry at some of this.&#8221;<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Here&#8217;s how the White House could make your mortgage more expensive President Joe Biden \/ Getty Images If you\u2019ve worked hard to maintain good credit, President Joe Biden is about to make your future mortgage more expensive. A Federal Housing Finance Agency rule set to take effect on May 1 will increase monthly mortgage fees<\/p>\n","protected":false},"author":197,"featured_media":1919106,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[544],"tags":[3620,4212,7838,6178,24735,25147,5280,6610],"class_list":["post-1919104","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-free-beacon","tag-biden","tag-black","tag-boost","tag-credit","tag-homebuyers","tag-homeownership","tag-pay","tag-rule"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1919104","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/197"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1919104"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1919104\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1919106"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1919104"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1919104"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1919104"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}