Right wing sources? I posted the FHFA links on like post 5. Did you actually read them? |
| Just dont use fha loans. |
The FHFA link does NOT show that good credit scores are paying higher rates than bad credit scores. The article was click bait. |
Yes, but judging by the number of people that think borrowers with lower credit scores are somehow advantaged/paying less no one bothered to actually read that. They instead latched onto the framing in the NY Post and obvious right wing rag Washington Times. As was intended. |
The news organizations cited in this thread are not exactly credible so if you are relying on their interpretation of the rules, yeah, you are being hoodwinked. |
| Yeah, nope, not clicking on two right wing links. |
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Can someone help me understand this in a neutral, nonpolitical way?
Is this accurate? The mortgage companies need to raise a certain amount of money through fees. Before, people with lower credit scores were charged nearly all of the money needed. Now, the charges are more even, and the people with higher credit scores will pay a higher percentage than the people with lower credit scores. |
Unironically, yes |
| Lifelong democrat voter here. This is idiotic, terrible policy, and anti-American. I feel like we live in an Idiocracy. |
Can you point to the specific aspect of the policy that you find anti-American? |
No. That is not correct. First, if you are getting a conventional loan this does not affect you. If you are getting a FHA loan, there are fees. People with good credit scores paid insanely low fees, people with bad scores paid insanely high fees. These fees did not relate in any way to actual risk, People with good credit scores will still pay very low fees perhaps 1% vs .25%, people with lower credit scores will pay reasonable fees, perhaps 2.5% instead of 4%. People with good credit are still paying lower fees than people with bad credit. If you have a good credit score you probably don’t need and FHA loan you probably will qualify for a conventional mortgage and this will not affect you. |
Thank you for that clarification. I could not tell. The latest number I found was that FHA loans are about 10% of the mortgage market. If that is accurate then this is just another manufacture right wing outrage. |
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You people are a bunch of idiotic rubes. It only impacts certain loans and low credit people still pay more.
communism indeed. dumb@ss3s |
What are the fees for? To process the loan? To offset to risk of default? If it is for processing, the fee should be proportional to the loan amount. If it is for offset the future defaults, people with higher credit shouldn’t be paying for it. |
| Who cares? This is DCUM, no one here has an FHA loan. If you have a good credit score and you’re still using an FHA loan you’re doing something wrong. |