How the US is subsidizing high-risk homebuyers -- at the cost of those with good credit

How the US is subsidizing high-risk homebuyers -- at the cost of those with good credit - Thomas Barrabi

• A little-noticed revamp of federal rules on mortgage fees will offer discounted rates for home buyers with riskier credit backgrounds — and force higher-credit homebuyers to foot the bill, The Post has learned.

"...The result, according to industry pros: pricier monthly mortgage payments for most homebuyers — an ugly surprise for those who worked for years to build their credit, only to face higher costs than they expected as part of a housing affordability push by the US Federal Housing Finance Agency...

Under the new rules, high-credit buyers with scores ranging from 680 to above 780 will see a spike in their mortgage costs – with applicants who place 15% to 20% down payment experiencing the biggest increase in fees.

• “This was a blatant and significant cut of fees for their highest-risk borrowers and a clear increase in much better credit quality buyers...