The administration's new rule will reduce mortgage fees for riskier borrowers but will be subsidized by borrowers with higher credit scores.
Homebuyers with good credit scores will soon be facing higher mortgage fees as the Biden administration seeks to close the racial homeownership gap and get more first-time and low-income buyers through the door.
"In the short term, this may increase homeownership among the targeted group, but I'm afraid it could decrease homeownership among the middle class," Jerry Howard, CEO of the National Association of Home Builders, toldOnly about 25 percent of homebuyers with Federal Housing Administration loans are people of color, according to the White House.
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