This guide will cover the new mortgage redistribution rule under the Biden Administration. There are a lot of mixed feelings about the New Mortgage Redistribution Rule among the Chief Financial Officers from 33 states. Alex Carlucci, a top-producing loan officer at Gustan Cho Associates, said the following about the New Mortgage Redistribution Rule:
Joseph Biden’s New Mortgage Redistribution Rule is under huge criticism for penalizing good credit with high credit score borrowers incentivizing high-risk lower credit high-risk mortgage borrowers: Biden, the worst president in the U.S. history, has come up with the worst off the wall policies in his presidency that many are not surprised with this ill fated new mortgage redistribution plan.
The Federal Housing Finance Agency’s (FHFA) NEW Mortgage Redistribution Rule would force Americans with good credit and high credit scores to pay more each month on their mortgage loans to credit financial incentives to low credit score higher risk mortgage borrowers.
What is The New Mortgage Redistribution Rule
What is the new mortgage redistribution rule? Does reward high-risk, low-credit-score borrowers make sense? Worse yet, does penalizing good credit borrowers with high credit scores make them pay for lower credit score borrowers make sense? Dale Elenteny of Gustan Cho Associates shares his thoughts about rewarding high-risk, low credit-score borrowers:
Many consumers with good credit and high credit scores are against rewarding high-risk borrowers. The money for the new mortgage redistribution rule will come from high credit score consumers who pay their bills. Is there such a thing as a pro in the new mortgage redistribution rule? Is this a joke or one of Joe Biden’s dementia Biden moments?
To make homeownership more accessible, the government recently announced a new Mortgage Redistribution Rule. The plan is designed to help homebuyers denied access to traditional mortgage loans due to their credit scores. Here’s what you need to know about the plan and its pros and cons.
How the Mortgage Redistribution Rule Works
The new mortgage redistribution plan is designed to provide homebuyers an alternative to traditional mortgage loans. It allows borrowers who have been denied access to traditional loans due to their credit scores to access funds from the government. The funds are then distributed to lenders willing to loan the homebuyers.
What are the Pros of The Mortgage Redistribution rule?
One of the major pros of the plan is that it helps to make homeownership more accessible to those who may not have been able to qualify for a traditional loan. This can help to reduce the cost of homeownership and make it more affordable for those who may not have been able to get a loan through traditional means.
What Are The Negative of The New Mortgage Redistribution Rule
Many mortgage and real estate industry experts think President Joe Biden and the Federal Housing Finance Agency have lost their minds and are both in third-degree dementia. Biden’s plan for redistributing fees and costs for mortgage loans from high credit score borrowers to those who do not pay their bills and have low credit scores does not seem fair. Wendy Lahn, Chief Legal Officer at Gustan Cho Associates, shares her opinion as follows:
Why would you penalize law abiding people playing by the rules and reward those who do not pay their bills or are financially irresponsible. Are we headed towards socialism and communism? Are we going to penalize consumers who play by the rules and reward those who don’t? Why play by the rules then.
However, there are some potential cons to the plan as well. For example, borrowers may not be able to get the same terms and conditions as they would with a traditional loan. Additionally, the terms and conditions of the loan may be more restrictive than they would be with a traditional loan.
What Is The Future of The Mortgage Redistribution Rule
Overall, The New Mortgage Redistribution Rule is a great way to help make homeownership more accessible to those who may not have gotten a traditional loan. It can be a great way to reduce the cost of homeownership and make it more affordable for those who may not have been able to get a loan through traditional means. However, it is important to be aware of the potential pros and cons of the plan before making a decision.
