Controversial Mortgage Fees Target Borrowers with Good Credit

The Federal Housing Finance Agency has updated its upfront fees for Fannie Mae and Freddie Mac mortgages, which has sparked criticism that borrowers with higher credit scores will subsidize those with lower credit through higher fees. Critics argue that these fees will punish responsible borrowers while encouraging others to act irresponsibly amid worsening affordability issues. However, experts say higher credit scores will still lead to lower payments and the new pricing adjustments are not penalizing borrowers with good credit.