Joe Biden was blindsided when a top Obama official gave him this devastating reality check
Joe Biden unveiled his latest attempt to fundamentally transform the country. Even Democrats couldn’t believe how far he was willing…
Joe Biden unveiled his latest attempt to fundamentally transform the country.
Even Democrats couldn’t believe how far he was willing to go.
And Joe Biden was blindsided when a top Obama official gave him this devastating reality check.
Democrats have spent decades trying to make sure that anyone, no matter how irresponsible or destitute, can buy a home.
The 2008 housing collapse was sparked in large part from regulations started under former President Bill Clinton that forced banks to make subprime loans to borrowers with bad credit and not verify income or work history to address inequities in housing.
These high-risk buyers were wiped out when prices fell.
Now President Joe Biden is back with a jaw-dropping scheme to help risky home buyers.
The Federal Housing Finance Agency, which oversees government owned mortgage companies Fannie Mae and Freddie Mac, is instituting a new rule designed to punish the responsible home buyers to subsidize high-risk ones.
Under the rule, home buyers with a credit score above 680 would pay a fee to help subsidize lower cost mortgages for buyers with a lower credit score or less income.
Low income and bad credit buyers would qualify for better mortgage rates that their financial situation normally wouldn’t entitle them too.
Federal Housing Finance Agency (FHFA) Director Sandra Thompson said the rule was crafted to “increase pricing support for purchase borrowers limited by income or by wealth” by making some home buyers pay a “minimal” fee.
Buyers who worked hard their entire lives and did the responsible thing are being forced to subsidize Biden’s latest scheme to redistribute wealth.
Former President Barack Obama’s Federal Housing Association Commissioner David Stevens called the move “unprecedented” during an interview with Fox News.
“This is an unprecedented move,” Stevens said. “We can do better programs to help more minorities get into homeownership. This is not the way to do it.”
This scheme was too extreme for a member of the Obama regime.
“For the first time ever, the [FHFA] director, in an effort to bring more first-time homebuyers, particularly minority homebuyers, made a shift where she lowered the fees being charged to borrowers with low down payments and low credit scores and the way she compensated or they compensated for that loss of income, that capital costs that they’re going to incur, is they’re actually raising fees on better creditworthy borrowers who are putting down much larger down payments,” Stevens added.
Responsibility is being punished to help out a pool of potential Biden voters ahead of the 2024 Presidential election.
Stevens said that the lending industry was “outraged” that Freddie Mac and Fannie Mae are being used for “political purposes.”
This change could deliver a blow to a housing market that’s already slowing from rising interest rates.
Most home buyers are now going to have to deal with another hit from increased fees by the Biden regime.
The slumping housing market is going to be run into the ground by Joe Biden’s reckless policies.