How the Feds Are Fueling a New Mortgage Crisis

May 10, 2023

by Joe Fried American Thinker

Perhaps you have already heard about the latest welfare gimmick from team Biden: the great shift in loan costs from high-risk borrowers to low-risk borrowers. Effective May 1, 2023, the Federal Housing Finance Agency (FHFA) approved a new schedule of upfront fees to be charged by two of its regulated entities, Fannie Mae and Freddie Mac.

In the table below, which pertains to home mortgage loans, the “X” axis shows the size of the down payment, with the amount getting smaller as we move from left to right. The “Y” axis shows the borrower’s credit score, with the top representing high credit scores and the bottom representing low scores.