New Law Raises Mortgage Costs for High Credit Homebuyers

The Biden administration’s latest federal regulations will impose higher mortgage rates and fees on homebuyers with good credit.

The Federal Housing Finance Agency’s controversial plan to expand affordable housing could lead to a redistribution of wealth, with those holding higher credit scores being forced to subsidize those with riskier credit ratings.

The recent decision shocked numerous homebuyers, as they diligently strived to maintain their credit scores for years.


The Washington Times reported a new regulation will mandate individuals seeking to purchase a home with a credit score of 680 or higher to pay an extra $40 per month, compared to those with lower credit scores when obtaining a $400,000 home loan.

New regulations set to take effect on May 1st will significantly impact private bank mortgages nationwide.

Federally-backed home financial institutions Fannie Mae and Freddie Mac are set to establish loan-level price adjustments (LLPAs) that will significantly impact the entire mortgage industry.

Former Obama administration official David Stevens has expressed concern over a new rule, calling it unprecedented.

Mortgage loan originators are sounding the alarm about a new rule and the difficulty they will face in explaining it to their clients.

A mortgage loan originator expressed concern over the daunting task of informing individuals who worked hard to maintain high credit scores and make substantial down payments that their efforts are now viewed as unfavorable.

Negative Impacts

The Federal Housing Finance Agency’s continued efforts to promote affordable housing have been met with approval.

Despite the potential benefits, some are worried about the negative consequences that may arise for responsible homebuyers who worked to maintain their credit scores.

The Biden administration’s latest federal rule will impose higher mortgage rates and fees on responsible homebuyers to fund those with riskier credit ratings.

The latest development in the affordable housing sector has sparked concerns about the potential negative impact on individuals with good credit scores.

This article appeared in The Political Globe and has been published here with permission.