Madison Ventures+ managing director Mitch Roschelle unpacks the economic impact of a Biden administration plan to subsidize mortgage rates through good-credit buyers.
Strategic Wealth Partners CEO Mark Tepper joins ‘Mornings with Maria’ to discuss changes to mortgage rates that could leave buyers with good credit subsidizing costs for high-risk buyers.
"If you have a high credit score, and 680 is a good credit score, you have to pay more. And we're talking about real money. This could be $100 a month more, depending on the size of your loan. So it makes no sense," Roschelle said. "And by the way, this isn't about first-time homebuyers. There's nothing in this rule that says it applies to first-time homebuyers. It applies to anybody borrowing money that's insured by FHA. It's madness.
A new Biden administration rule set to go in effect May 1 will force good-credit home buyers to pay more for their mortgages to subsidize loans to higher-risk borrowers.
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