Homebuyers With Good Credit Could Pay To Boost Black Homeownership Under Biden Rule
Here's how the White House could make your mortgage more expensive
If you’ve worked hard to maintain good credit, President Joe Biden is about to make your future mortgage more expensive.
A Federal Housing Finance Agency rule set to take effect on May 1 will increase monthly mortgage fees for borrowers with good credit scores. Those higher fees will be used to subsidize individuals with bad credit scores.
The administration claims the change will help support low-income home buyers. But others say it's part of the White House’s ongoing effort to remedy racial differences in home ownership.
Whatever the rationale, the result is clear: Borrowers with strong credit will likely wind up paying thousands of dollars more over the course of their mortgages, thanks to the Biden administration’s policy.
Here’s how the rule change will work:
When an individual takes out a mortgage, the interest rate they pay generally reflects two things: the federal funds rate set by the Federal Reserve and something called a loan-level price adjustment. The latter functions like a car insurance premium that goes up after you’ve had an accident.
In short, riskier borrowers with low credit scores or income pay more each month for their mortgage. These borrowers will still pay more after May 1 but much less than they paid before. In order to compensate for that lost revenue, borrowers with strong credit will see their monthly increase to roughly $40 a month on a $400,000 mortgage. That’s an extra $14,400 over the course of a standard 30-year mortgage.
The Federal Housing Finance Agency regulates federal mortgage guarantor giants Fannie Mae and Freddie Mac—which are both quasi-government agencies—meaning those fee hikes will be reflected for most consumers who seek to take out a mortgage with a bank. A majority of mortgages are eventually secured by Fannie Mae and Freddie Mac, resulting in the two companies holding tremendous influence over conventional mortgage rates.
According to former Federal Housing Finance Agency director Mark Calabria, shaping the policy to benefit anyone with lousy credit lets the Biden administration avoid offering sweetheart deals to minorities, which would violate federal law.
"The Biden administration is definitely trying to create more of a cross subsidy between good credit and bad credit, that’s the intent," Calabria said. "They are essentially trying to discriminate by race within the legal rules they have and minorities tend to have lower credit scores."
A review of the Federal Housing Finance Agency’s recent rule proposals make it clear that increasing minority—in particular black—home equity is at the heart of a variety of agency initiatives.
On April 19, the Federal Housing Finance Agency proposed a series of rules targeted at "Fair Lending, Fair Housing, and Equitable Housing Finance Plans." Most of the proposals would "codify existing FHFA practices" but also add requirements for lenders related to increasing minority homeownership. Some objectives of the rules include "reducing the homeownership gap for an underserved community" and "reducing disparities in negative outcomes for an underserved community in servicing, loan modifications, and loss mitigation."
In those proposals, the Federal Housing Finance Agency states that part of the reason it wishes to boost minority homeownership is to generate wealth for those communities.
Because lenders heavily rely "on certain credit attributes in the current mortgage underwriting process," black home loan applications are denied at a higher rate than every other ethnic group in the country, including Hispanics and native Indians. Neighborhoods with higher concentrations of blacks also see lower home prices, the Federal Housing Finance Agency notes.
"Their view is you didn’t build that credit. It’s part of their general belief that credit scores are due to societal facts out of their control," Calabria said. "It’s legitimate for people to be kind of offended and angry at some of this."
It is Biden, Obama, and other leftists who continually seek to divide the country, not Trump
The Washington Post a few days ago highlighted a just-published book by its former columnist Thomas Edsall, now at the New York Times. The book’s publisher, Princeton University Press, writes:
Thomas Byrne Edsall fears that the country may be headed over a cliff, arguing that the election of Donald Trump was the most serious threat to the American political system since the Civil War. In this compelling and illuminating book, Edsall documents how the Trump years ravaged the nation’s politics, culture, and social order.
This analysis is a crock. Democrats have been seeking to divide the country by race, sex and class for decades. They have sought to destroy anyone who got their way. It started way before Trump.
Is American politics past the point of no return? In this compelling book, New York Times columnist and political reporter Thomas Byrne Edsall documents how the Trump years ravaged the nation’s politics, culture, and social order.
Obama lied continuously to get Obamacare passed, not Trump. People who were against Obama’s policies on healthcare and other things were frequently called racists. “See! Right-wing intolerance, hatred and racism fuel this movement.”
Obama dictatorially ignored immigration laws when he implemented DACA, not Trump
Obama and Biden support lawless sanctuary cities and states, not Trump
Obama used the IRS to target political opponents, not Trump. He sought to silence people who disagreed on policies before elections.
Biden compared tea party members who wanted smaller government as domestic terrorists. Democrats frequently use this tactic whether it is people who want to make America great again, people who protest elections, or parents.
Obama and Biden have used the Justice Department to spy on and target political opponents, not Trump.
Obama and Biden support soft on crime DA's, not Trump
Obama and Biden dictatorially use the EPA to destroy energy companies, not Trump
Biden is destroying women and girls right by making them share space and compete with biological men, not Trump
Biden appointed a woman to the Supreme Court who can't even define what a woman is, yet we are supposed to trust her to interpret laws.
Biden supports allowing kids to be castrated, or have their breasts removed without their parents’ knowledge, not Trump.
Biden ordered Catholic priests to stop showing up at Walter Reed Hospital, not Trump
The ESG movement is meant to divide and destroy companies that don't adhere to leftist policies.
Biden and Obama support abortion on demand and withholding health care from newborn babies in botched abortions, not Trump
Biden and Obama oppose school choice for poor kids, not Trump.
Biden's justice Department targeted parents and Catholics, not Trump.
A probe of the National School Boards Association’s call for federal investigations of parents as domestic terrorists found the White House was involved in the drafting process that led to the controversial request.
Obama and Biden had slush funds at EPA, Justice Department and CFPB where they shook down companies and gave kickbacks to leftist groups, not Trump.
Biden's justice Department doesn't care about groups that targeted cities or crisis pregnancy centers or illegally protested in front of Supreme court justices’ houses, not Trump's
The CDC, under Biden, coordinated with teachers’ unions to keep schools closed, which has caused massive permanent harm to children and families.
The American Federation of Teachers lobbied the Centers for Disease Control and Prevention on, and even suggested language for, the federal agency’s school-reopening guidance released in February.
The media is a major participant in the destruction of American culture and politics.
They participated in spreading the lies about Russian collusion and calling Trump an illegitimate president for years to divide and conquer the public.
They still participate in covering up for the Biden family corruption, which is massive.
The media repeated all the misinformation from Fauci and the CDC while silencing those who disagreed. People who didn’t take the vaccine were fired and were said to want people to die.
The media never called Democrats who have challenged elections “election deniers,” but calls any Republicans who challenged an election “deniers” to disparage them in the eyes of the public.
The media and other Democrats always play the race card to intentionally divide the country.
The examples are endless:
The “hands up, don't shoot” narrative was a blatant lie to gin up racial hate and division against white cops. How many police have been injured and killed because of this intentional lie?
The media targeted white Christian boys for the crime of wearing MAGA hats. The media and other Democrats don't care who they destroy as they quest for power.
Democrats used the filibuster over 300 times to stop Trump's policies and appointments. But then:
Democrats working to dismantle the filibuster as a major impediment to their legislative agenda say the procedural maneuver is a threat to civil rights.
Trump was falsely blamed for a photo showing kids in cages to gin up racial hate towards him. The pictures were from the Obama, Biden years.
Biden and others continually lie about what Trump said at Charlottesville. Trump repeatedly denounced white supremacists and Nazi's but that wouldn’t divide the public so they lie.
We keep hearing that Trump is an authoritarian, which is absolute BS. Trump tried to give the money and power to the people. Obama and Biden tried to amass power for themselves and the government.
Trump’s policies were lifting all boats. Minorities and the poor were seeing real wages rise substantially. The poverty rate hit a record low in December 2019 under Trump, not under the Great Society and anti-poverty programs that keep people poor and dependent on the government.
Think how much better Trump could have done if the media and other Democrats weren’t seeking to destroy him every day.
Obama and Biden refuse to enforce immigration laws Congress passed and dictatorially implemented DACA.
Now Biden, without Congressional approval, has approved billions in health insurance benefits for illegals.
Biden wants to buy young people’s votes, so he is dictatorially trying to cancel student debt.
Biden and his EPA are dictatorially forcing people to buy expensive electric vehicles powered by flammable pollutants.
Biden is forcing schools to allow boys to compete with girls and forcing girls to share facilities with people with penises.
Conclusion: The media and other Democrats will seek to destroy whichever Republican is chosen as the presidential candidate, just as they have in the past. It doesn't matter if they are black, white, orange or if they are a woman. They are the party of personal destruction. Just watch what they do to Nikki Haley, Tim Scott, and Clarence Thomas.
Photo creedit: YouTube screengrab
VIDEO
Tucker Carlson: Biden should be impeached for this
https://www.youtube.com/watch?v=c_yRBwxn-RA
(They really have absolutely no idea how many illegals are in the country as the Democrat Party, U.S. Chamber of Commerce, La Raza/ UnidoUS, Mexico and the Catholic Church thwart any effort to count them)
Largest Immigrant Groups in the United States
Any attorney general who is not an
activist is not doing his or her job.
Eric Holder
In Part One of this series, we exposed the Chicano Marxist take over of the California legislature and their plans to defy federal immigration laws and expected actions of the incoming Trump administration. Gov. Jerry Brown’s nomination of Xavier Becerra to be California’s next Attorney General was the first of many steps to protect the pervasive lawlessness of the radical left. Becerra has already taken an aggressive and combative stance against President-elect Donald Trump, vowing to fight Trump’s efforts to enforce immigration laws, and even block attempts to deport criminal illegal aliens. Trump’s campaign centered on building a wall along the United States border with Mexico to keep out illegal immigrants, violent gangs, and terrorists posing as immigrants.
Xavier Becerra, currently a 12-year member of Congress, is an admitted member of MEChA, or “Movimiento Estudiantil Chicano de Aztlan,” often likened to a Latino KKK.
Becerra has publicly defended MEChA, even though the Chicano supremacist group evangelizes discrimination against non-Hispanics and calls for the killing of Border Patrol “pigs.” MEChA’s rallying cry is: “For the race, everything; For those outside the race, nothing.”
Becerra’s Radical Plans
Recently, the State Assembly Committee on the Office of the Attorney General asked nominee Becerra to detail his plans on the issues of immigration, civil rights, the environment, policing and consumer protection – apparently the only issues the California Legislature is interested in Becerra defending.
In a letter released Saturday, Becerra praised California’s policies helping illegal aliens get driver’s licenses, free college tuition, and free lawyers to represent them in deportation cases, calling it “national leadership.”
“All of these policies and programs are representative of California’s values as a welcoming state,” Becerra wrote to the Assembly committee.
Becerra also took a shot at Trump for proposing to create a registry of Muslim immigrants during the campaign.”Disturbing statements uttered during the recent Presidential campaign have given rise to legitimate fears that the new federal administration might seek to adopt policies that would discriminate against people based on factors such as their religious belief,” Becerra wrote. “Any such policies would be antithetical to the deepest constitutional values and traditions of this nation — a nation founded in part by men and women fleeing religious persecution.”
“I have no intention of allowing this policy through the doors of California,” he wrote.
Like a good progressive foot soldier, Becerra also vowed to fight for abortion, calling it “reproductive freedom.”
Becerra said he will support California’s recent legislation expanding voter registration and participation in elections. He might want to look into the 650,000 newly registered California voters, registered online only weeks before the election. According to the Los Angeles Times, “98% of all the growth in California’s voter ranks in 2016 happened in just the last 45 days of the registration season.”
As Attorney General, Becerra has vowed to continue enforcing policies to combat climate change and work to “transition Californians to a low-carbon way of life.” Becerra added that a part of environmental protections is safe drinking water and vowed to “pursue the goal of providing safe drinking water to all Californians.” Perhaps Becerra can begin by supporting the safe drinking water bills that Assemblyman Devon Mathis has tried to get passed over the last two years? In Mathis’ district, wells began going dry in East Porterville more than three years ago, with more continuing to dry up every day.
Assemblyman Devon Mathis, R-Porterville, authored the bills to provide $10 million to homeowners (not farmers) to dig deeper wells and clean contaminated ones.
Both bills passed through the Assembly and a state Senate committee without opposition, only to have Senate Appropriations Chairman Ricardo Lara, D-Los Angeles and Mecha activist, put both bills on suspense– one after the other, killing them and depriving 10,000+ low-income individuals access to running water. Sen. Lara was playing politics with this Republican bill, despite the 10,000 poor people who need the clean water.
Sanctuary Cities
California, through its 35 Sanctuary Cities, is clearly violating U.S. Federal Immigration law. Recently, Democrat members of the State Legislature proposed two bills: SB 6 by Sen. Ben Hueso, to create a state program to fund legal representation for illegal aliens facing deportation, and AB 3 by Assemblyman Rob Bonta to create taxpayer-funded training for defense attorneys and public defenders on immigration law for illegal aliens.
And now California is going to try to prevent the new Presidential administration from enforcing federal immigration law despite the fact that the Constitution clearly imposes a duty on the president and the executive branch, to enforce the law.
Hiring Eric Holder… for what?
Democrats in the California State Legislature apparently decided Becerra isn’t enough legal muscle, and recently hired former Obama Attorney General Eric Holder to fight a “clear and present danger” from President-elect Trump… the same former Attorney General Eric Holder who was once blasted for helping to trigger a “war” on police and called America “a nation of cowards” on the issue of race. However, he now says he sees his “younger” self in Black Lives Matter activists… this is who California hired to assist California’s top law enforcement officer?
Since Trump — who is not referring to himself as “The Office of President-Elect,” as his predecessor did — has not yet taken office, nor any official actions, it is hard to see specifically for what purpose Holder has been hired.
There certainly is poetic justice in hiring the failed Attorney General of the failed Obama Administration to defend the failed and deteriorating policies of the Jerry Brown administration and radical Democrats running the state.
Described as a “devious, power-hungry, racial zealot,” Eric Holder is also a dubious choice since he is the only U.S. Attorney General in history to be held in contempt of Congress, when he refused to turn over Operation Fast and Furious documents to Congress. One of the most reckless law enforcement operations ever conducted by the Justice Department, it involved selling guns to Mexican drug cartels, and resulted in the death of a U.S. border patrol agent, Brian Terry, as well as hundreds of Mexican citizens.
Under Holder’s watch at the DOJ Civil Rights
Division, more than half of all the lawyers
hired were chosen from four radical, anti-
American organizations: the ACLU, National
Council of La Raza, NAACP, Mexican
American Legal Defense and Education Fund,
and the Lawyer’s Committee for Civil Rights,
John Fund and Hans von Spakovsky outlined
in their 2014 book, “Obama’s Enforcer: Eric
Additionally, the Justice Department under Holder, and now Loretta Lynch, has one of the worst records before the U.S. Supreme Court, losing significantly more cases than either of the Bush or Clinton Departments of Justice. “In most administrations, the department wins about 70 percent of the cases before the Supreme Court; Mr. Holder’s department has a losing record and has lost at least nine cases 9-0–even with Obama appointees Elena Kagen and Sonia Sotomayor on the court,” wrote Jared Taylor of American Renaissance, in a review of “Obama’s Enforcer: Eric Holder’s Justice Department.”
Judicial Watch announced today that it filed a records request with the California Legislature Joint Rules Committee seeking to examine legislative records regarding the state’s employment of former Obama U.S. Attorney General Eric Holder Jr. The record request includes:
All contracts between the California Legislature and former U.S. Attorney General Eric Holder Jr. or Covington and Burling.
All communications between the California Legislature and former U. S. Attorney General Eric Holder Jr. or Covington and Burling about the Legislature’s retention of Holder and/or Covington and Burling.
“Judicial Watch’s records request is designed to expose how California state legislators are wasting tax dollars to take care of another corrupt politician – Eric Holder – under the guise of resisting the rule of law on immigration and other matters,” stated Judicial Watch president Tom Fitton. “His record at the Clinton and Obama Justice Departments demonstrates a willingness to bend the law in order to protect his political patrons.”
The hiring of Eric Holder by the California Legislature confirms a lack of confidence in Xavier Becerra by Gov. Brown and Democrats in the Legislature–which must be quite humiliating for Becerra, especially after his promise to uphold California’s “progressive” policies on immigration, Obamacare, energy, and criminal justice. “If you want to take on a forward-leaning state that is prepared to defend its rights and interests, then come at us,” Becerra said, directing his comment to Trump. Choosing Holder also reiterates the anti-American, anti-Constitution, anti-religion movement of Marxists in America, but particularly in California. The biggest obstacle standing between Marxism and Marxist domination of the world is America, and the U.S. Constitution. And standing between a Marxist takeover of America is California – only when California is destroyed can Marxists proceed.
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