Biden's Mortgage Fee Plan Penalizes High Credit Score Homebuyers.
Originally Published 2 years ago — by Newsweek
The Biden administration is set to raise mortgage fees for homebuyers with good credit scores in an effort to close the racial homeownership gap and help low-income and first-time buyers. Starting in May, the Loan-Level Price Adjustment (LLPA) matrix will be upended, with riskier borrowers receiving more favorable mortgage terms and good credit borrowers seeing their monthly mortgage payment rise by over $60. Critics argue that the move unfairly penalizes those with good credit and may not effectively address housing affordability challenges. The FHFA has defended the changes, calling them minimal and necessary to ensure government-sponsored enterprises fulfill their role in any market condition.