Reply to Hike in payments for good-credit homebuyers to subsidize high-risk mortgages

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I... don't understand the policy reason behind this?

I had mediocre credit (600 score) when we bought our current home and we wound up with a higher rate as a result. We also only had 10% down, which also impacted our rate. But I've worked incredibly hard for almost 15 years to improve my credit and sock away money, plus we've never missed a mortgage payment (including all our PMI payments since we were putting down less than 20%), and you're saying that because I now have a 800+ credit score and have worked diligently for two decades in order to save money and build equity, I now have to pay more money in order to help people who are now in the exact same situation I was in 15 years ago?

I don't understand. I did exactly what I was told I needed to do. Why am I the one being asked to help?[/quote]

So far, you have two right wing sources reporting this as a horrific charge to hardworking people while those with lower credit scores get off scot free. And their sources (at least the NY Post) are people in the mortgage banking industry. Shocker.

In reality. admitted in the last paragraph or so of the article, it's a balancing exercise and buyers with lower credit scores will still pay higher fees, just not as high as before.

"Overall, lower-credit buyers will still pay more in LLPA fees than high-credit buyers – but the latest changes will close the gap.

The official said the LLPA changes will result in an average price hike of just three to four basis points, or 0.03% to 0.04%, across the spectrum of mortgage recipients – the equivalent of a few dollars per month."
[/quote]

Right wing sources? I posted the FHFA links on like post 5. Did you actually read them?[/quote]

The FHFA link does NOT show that good credit scores are paying higher rates than bad credit scores.

The article was click bait.

[/quote]

Bad credit scores are paying higher rates than good credit scores, however it seems from May 1st, the gap will narrow somewhat, i.e. those with bad credit score with pay very very slightly lower rates, and those with good credit scores will pay very very slightly higher rates. Is one at the expense of the other? Who knows, but don't think the article is click bait. In the end, those with bad credit scores will still overall pay higher rates than those with good credit scores, again, the gap will narrow somewhat.[/quote]

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