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[quote=Anonymous][quote=jsteele]I just read through the article to which the original poster linked and I believe the change is being mischaracterized. I can understand why some people would be upset, but I think this is being spun more negatively than is necessary. Under current rules, those with high credit scores and large down payments pay significantly lower rates than those with lower credit scores and smaller down payments. That, of course, is reasonable. Under the new rules, the same will be true. The difference is that the difference between the rates will be decreased. Those with high credit scores will get a slightly higher rate than what was previously available and those with lower credit scores will get a slightly lower rate than previously. But, those with high credit scores and large down payments still get significant cost savings compared to those in the opposite situation.

I have no idea what a "fair" interest rate. Maybe the old rates were fair or maybe they were biased toward the wealthy. Maybe the opposite is true. As I said, I don't know. But, I suspect most others don't know either. But, the bottom line is that nobody is being punished for having a high credit score. They are still getting a significant advantage.
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I have been searching for more information on this plan.  What I did find is that this is for people who purchase or refinance after May 1.  
Regardless of whether those with a high credit score and 15% or 20% down payment have an advantage already, they are still getting punished for having good credit and saving for a down payment.

[quote]Homebuyers with good credit scores will soon encounter a costly surprise: a new federal rule forcing them to pay higher mortgage rates and fees to subsidize people with riskier credit ratings who are also in the market to buy houses.
The fee changes will go into effect May 1 as part of the Federal Housing Finance Agency’s push for affordable housing, and they will affect mortgages originating at private banks across the country. The federally backed home mortgage companies Fannie Mae and Freddie Mac will enact the loan-level price adjustments, or LLPAs.
Mortgage industry specialists say homebuyers with credit scores of 680 or higher will pay, for example, about $40 per month more on a home loan of $400,000. Homebuyers who make down payments of 15% to 20% will get socked with the largest fees.
The new fees will apply only to Americans buying houses or refinancing after May 1.
Lenders and real estate agents say the changes will frustrate homebuyers with high credit scores and homeowners seeking to refinance because the rule punishes them for their relatively strong financial positions.

“The changes do not make sense. Penalizing borrowers with larger down payments and credit scores will not go over well,” Ian Wright, a senior loan officer at Bay Equity Home Loans in the San Francisco Bay Area, told The Washington Times in an email message. “It overcomplicates things for consumers during a process that can already feel overwhelming with the amount of paperwork, jargon, etc. Confusing the borrower is never a good thing.”
He said the rule will “cause customer-service issues for lenders and individual loan officers when a consumer won’t understand why their interest rate and fees suddenly changed.”
“I am all for the first-time buyer having a chance to get into the market, but it’s clear these decisions aren’t being made by folks that understand the entire mortgage process,” Mr. Wright said.
The new fees “will create extreme confusion as we enter the traditional spring home purchase season,” said David Stevens, a former head of the Mortgage Bankers Association who served as commissioner of the Federal Housing Administration during the Obama administration.

“This confusing approach won’t work and more importantly couldn’t come at a worse time for an industry struggling to get back on its feet after these past 12 months,” Mr. Stevens wrote in a recent social media post. “To do this at the onset of the spring market is almost offensive to the market, consumers, and lenders.”[/quote]

https://www.washingtontimes.com/news/2023/apr/18/joe-biden-hike-payments-good-credit-homebuyers-sub/[/quote]

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