Buyers save for years and build up their credit to buy a home. As of May 1, the Biden administration will be increasing fees for buyers with a credit score above 680 in order to subsidize buyers with lower credit scores which they are calling "equitable access".
"Before May 1, if you have a credit score of 740 or higher, on a $500,000 loan, you would pay a fee of 0.25%, which is $1,250. After that date, you could pay as much as 0.375% - or $1,875 - on that same loan. People with lower credit scores will pay a lower rate."
See the link below for more information.
New Mortgage Fees set by Biden Administration
And here is another article about these fees:
Newsweek - Biden Raises Costs for Home Buyers With Good Credit to Help Risky Borrowers
The National Association of Realtors (NAR) " urges the FHFA (Federal Housing Finance Agency) to eliminate the fee increase on strong credit borrowers".
Home buying is difficult as it is right now with scarce inventory, higher interest rates, and multiple offers. I don't think this helps buyers in the long run and it definitely doesn't help most of my buyers.
Per Larry Kudlow (National Economic Council Director) "We learned the hard way [in 2008] that if you can't afford a home, just getting a subsidy one time to get a mortgage, you won't be able to carry it".
There is a bill in Congress to repeal this new policy but it has been in effect since May 1.
Contact your congressman and Senate. I did.
Look up your Congressman (woman)