Home Loan Equity: …To Each According To Their Low Credit Rating

     Recently, California moved to charge the well off and even the middle class to subsidize the electricity rates for the poor. Now, the Biden Administration is going to do the same for Home Loans.

“Once again, the administration is prepared to ‘subsidize the losers’ mortgages,’ so to speak, and not in any effort to save the economy or help Americans avoid destitution. The Biden administration’s only goal is to purchase the loyalty of prospective homebuyers who are locked out of the property market by high real-estate prices and rising interest rates — rising interest rates necessitated, in part, by the administration’s reckless spending. And Americans who did everything right are going to suffer, perversely enough, because they did everything right.

“The administration is set to enforce a new rule that will compel potential homebuyers who spent their lives paying their bills on time and building good credit scores to pay more for their mortgages. Why? To subsidize the loans assumed by higher-risk borrowers. Beginning May 1, prospective homeowners with a credit rating of 680 or more ‘will pay, for example, about $40 per month more on a home loan of $400,000,’ the Washington Times reported this week. ‘Homebuyers who make down payments of 15% to 20% will get socked with the largest fees.’


“It’s difficult to understate the perverse incentives this act of bribery will encourage. You’ve spent your adult life borrowing responsibly and paying your bills on time. You’ve saved for years to acquire enough money for a down payment on a home that approaches the rate at which you can avoid a Federal Housing Administration–subsidized loan and the premium it imposes on your mortgage insurance. For all your diligence and hard work, the Biden administration will now punish you only so that consumers who were not similarly conscientious can have access to better mortgage rates and lower down payments. Knowing that, why on Earth would you devote yourself to an unrewarding enterprise like thrift when someone, somewhere will foot your bill regardless?”

     The Left believes those who are well off only got their because they were privileged by systems of oppression, and thus must be punished in order to achieve “equity”… not “equity” as it owning your home and being above water on your loan, but the “equity” that requires inequality of treatment and of results.

     It’s the “equity” argument to lift those at the bottom at the expense of those at the top, which will inevitably fail.

     This will be worse for everyone except the ultra-rich nomenklatura and the true believers who want to burn it all to the ground.

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