Fees with credit scores

[Evan O'Brien]

What’re everyone’s thoughts on borrowers with higher credit scores having to pay additional fees due to the New Federal Mortgage Fee Plan that is being put into place?? So ridiculous

[Jack Tulloch]

In my opinion, it seems unfair that individuals with strong credit scores are being penalized and individuals with lowers' scores are being rewarded. I do think it is important to note that similar LLPAs were already in place, the new plan just has heavier adjustments. 

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%….

It is a shocking move and the public backlash has certainly confirmed that.  

Federal Housing Finance Agency Director Sandra L. Thompson called it "another step to ensure that [Fannie Mae and Freddie Mac] advance their mission of facilitating equitable and sustainable access to homeownership."​​ While I agree with the importance of equitable and sustainable homeownership, penalizing those who worked hard to maintain excellent credit scores, and rewarding those who did not is simply not fair.