Higher qualified borrows are being penelized by FHFA

[Alan Asriants]

According to FHFA - Borrowers with higher credit scores and larger down payments are going to be penelized with higher rates to subsidize higher risk borrowers. So everything you have been doing to save up, work for good income and work on your credit score is now going to bite you in the ***.

What is everyone’s thoughts on this? Market is already extremely unstable and I imagine that passing this will only remove more buyers from the market, squeezing supply more and creating a bigger housing affordability issue.

I don’t think this new fee is really going to help high risk borrowers at all.

Instead, why not incentivize lenders to provide free, appraisals or larger credits?

Here’s the article:

https://m.washingtontimes.com/news/2023/apr/18/joe-biden-hike-payments-good-credit-homebuyers-sub/