Quote:
Originally Posted by MZ DAIZY
Why are people with good credit being penalized?
And what about refinancing?
PS: the REAL reason is to get more low income, democratic voters into the suburbs where Republicans rule.
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I agree, but I unfortunately have no say in the rules/regulations. After reading the article you posted, and if it becomes a reality, this absolutely makes no sense. IMO, this could lead to a higher chance of foreclosures with riskier borrowers, but even with increased foreclosures, this shouldn't lead to a housing market crash like 2008 due to the current massive housing shortage compared to the number of buyers.
And this would theoretically apply to refinances as they are a new loan/term. But it also depends on the loan type, as LLPA's generally only apply to Fannie Mae/Freddie Mac loans.
PS: I agree. It feels more like a political stunt than anything.