Controversial Mortgage Policies Spark Concerns Among Experts and Officials.
New mortgage rules from the Biden administration have gone into effect, which could increase fees for borrowers with good credit to offset costs for less qualified buyers. However, experts warn that the plan could lead to unintended consequences and risks similar to the 2008 financial crisis. The plan has been met with pushback from many leaders in the mortgage industry, with experts estimating that borrowers with a credit score above 680 could expect to pay an extra $40 per month on a $400,000 mortgage. The Federal Housing Finance Agency (FHFA) Director Sandra Thompson attempted to alleviate fears over the new rules, saying the new fees will not "represent pure decreases for high-risk borrowers or pure increases for low-risk borrowers."