Have you worked hard, scrimped and sacrificed to pay your bills on time, so that you earned a good credit score? Well, congratulations! The Biden Administration is going to punish you for it! On the other hand, if you have a bad credit score, you’ll be rewarded for that.
A new federal housing rule set to take effect May 1 will hit homebuyers who have federally-backed mortgages via Fannie Mae and Freddie Mac with an extra charge if they have a FICO credit score of 680 or above. For instance, a 30-year loan of $400,000 at 6% will cost you an extra $40 a month, or $14,400 over the full loan term. It will also hit those who are refinancing mortgages. This will help pay for the cut in fees they’re giving to people with lower credit scores.
They claim this is being done to “lower the gap in home ownership opportunities” for minorities, first time buyers and others with lower credit scores. But is the best way to do that by punishing people who are responsible and subsidizing high-risk borrowers? Didn’t we learn what happens when you hand out high risk mortgage loans back in 2008? One former FHA commissioner under Obama told the New York Post that the Biden move is “unprecedented,” and his email is full of messages from people at mortgage companies telling him “how unbelievably shocked they are” by it.
How are they shocked by the government punishing responsibility and rewarding irresponsibility? Have they never heard of our income tax code?
Related: Whenever I see polls showing that some percentage of Americans larger than low single digits wants Biden reelected, I wonder just how much some people are willing to pay to keep imposing their crazy political views on the rest of us. Because that price is very high, and rising all the time. Maybe some of them don’t even realize how much it’s costing them, but here are some numbers that may clue them in. You might want to share these with your liberal friends and relatives and ask, “How’s the Democrat rule workin’ out for ya?”
House Speaker Kevin McCarthy laid out the shocking numbers. Since Biden took office, wages are up an average of 9%, which he is quick to pat himself on the back for. But consumer prices are up by 14.9%, meaning there’s been a 5.1% drop in real wages. A typical two-income family is making $200 more per month, but inflation has caused their actual pay to shrink by over $100 a month. That’s a pay cut every month he’s been in office.
Not only has the average family lost $5600 in purchasing power, but they’re also paying $1500 more per year due to higher interest rates. That represents a combined loss of $7,100 a year in annual income. That’s more than a month’s pay for half of all US households.
Joe Biden’s presidency is like those fancy restaurants that sprinkle flakes of gold on a hamburger and charge you $200 for it. Even if you actually like it for some unfathomable reason, is it really worth what it’s costing you?