The Federal Housing Finance Agency is implementing a new federal rule that will require homebuyers with good credit to pay higher mortgage rates and fees to subsidize people with riskier credit ratings. This rule will impact mortgages from private banks across the country, and will take effect on May 1, 2023.
The Federal Housing Finance Agency is implementing a new federal rule that will require homebuyers with good credit to pay higher mortgage rates and fees to subsidize people with riskier credit ratings. This rule will impact mortgages from private banks across the country, and will take effect on May 1, 2023.
Aiming to provide affordable housing, the Federal Housing Finance Agency is implementing a new federal rule that will increase the costs for homebuyers with good credit. According to a report by The Washington Times, homebuyers with a credit score of 680 or higher will need to pay about $40 more per month than those with riskier credit ratings when obtaining a $400,000 home loan. This rule will apply to mortgages from private banks throughout the United States, including loans from Fannie Mae and Freddie Mac, and will take effect on May 1.
Mortgage industry professionals have expressed concern that this new policy will be an unwelcome surprise for homebuyers who have worked diligently to build their credit over time. They anticipate that it may be challenging to explain to such individuals that their good credit is now viewed as a negative factor. David Stevens, the Federal Housing Administration's former commissioner, warns that this policy could discourage people from striving to improve their credit scores, which could have adverse effects on the housing market.
Source: https://www.newsnationnow.com/business/your-money/homebuyers-good-credit-higher-mortgage-rates/
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