By Diane L. Gruber, 4/25/23
The Biden Administration has come up with another racist scheme to 1) woo back black & independent voters and 2) teach black Americans they can’t function without Democrats. This scheme forces Americans with good credit scores to pay money to subsidize those with poor credit scores because blacks, as a group, have the lowest scores. This latest wealth transfer program goes like this:
Beginning May 1st, home buyers with 680 credit scores or higher will be forced to pay $40 per month MORE on a $400,000 mortgage in order to subsidize those with credit scores below 680. Those with lower scores do not qualify for mortgages, so the Biden Administration is forcing OTHER home buyers to make part of their mortgage payments for them so they can buy homes. Over the life of a $400,000 30-year loan, that will cost responsible homeowners $14,400. Of course, smaller mortgages will require smaller “equity” payments and bigger mortgages will require bigger “equity” payments from responsible borrowers.
This change is just part of the Federal Housing Finance Agency’s broader examination of fees to provide “equitable and sustainable access to home-ownership,” so homeowners can expect more “equity” fees in the near future.
WHY DO BIDEN’S HANDLERS THINK THIS IS A GOOD IDEA?
The Biden Administration believes that blacks are not capable of managing their finances, so they are stepping in to subsidize financially irresponsible behavior using “other people’s money.”*
It is true that black Americans have lower credit scores but, instead of educating them how to handle their finances so they can improve their scores, Biden is enabling them. Differences in credit scores reflect differences in lifestyle and has nothing to do with skin color nor the non-existent “system racism” excuse used to justify ever more oppressive government.
Based on FICO score data, the payment processing company Shift calculated that the median credit score for all Americans was 703 in 2019. Asian-Americans enjoyed the highest credit scores, with an average of 745. That was slightly above the average for white Americans, which was 734 in 2019. Hispanics stood at 701 on average. Black Americans had an average credit score of 677 in 2019, just three points below 680 which the bureaucrats chose to divide “winners” from “losers.”
AFTER DECADES OF OVER REGULATING HOUSING, FEDS PRETEND TO CARE ABOUT DECLINE IN HOMEOWNERSHIP
The Obama/Biden Administration started the process of killing the suburbs by outlawing single-family homes, removing their tax base and wiping out residents’ voting rights. Biden/Harris is expanding upon it.
This change in mortgage financing is just one more step to lower, not increase, private ownership of single-family homes. Biden’s handlers are aware that home buyers with poor credit scores are likely to default on their mortgages just like during the Mortgage Collapse in 2008. The new rule will affect mortgages from private banks across the nation. According to The Washington Times, Fannie Mae and Freddie Mac, federally-backed home mortgage companies which were instrumental in causing the 2008 real estate crisis, will establish the loan-level price adjustments.
By the next real estate crisis, the 2024 presidential election will be in the rear view mirror.
“We have a problem here in America because fewer than half of the Hispanics and half of the African Americans own their home. That’s a homeownership gap . . . I set an ambitious goal, that by the end of this decade we’ll increase the number of minority homeowners by at least 5.5 million families…