The Biden administration has passed a new rule that charges people with good credit a fee, so that money can be used to subsidize people with bad credit. Anyone with a credit score of more than 680 will pay the fee, which will be used to lower interest rates for people with scores below 680.

I can’t even. When I showed this to my wife, she thought it was a Babylon Bee story.

Categories: economics

18 Comments

Anonymous · April 19, 2023 at 8:16 pm

Commies gonna commie

Jester · April 19, 2023 at 8:39 pm

Honestly I would not be surprised if this is not a combo action from the criminals in congress and the banks. 2008 taught that we can’t give loans out to people with horrible credit and garbage jobs. Fast forward to today the amount of people that are getting loans or refinancing is much lower so those banks gotta make up the diffrence some how with out hitting the share holders or going bankrupt. So how do we solve this with out taking a direct hit with sub primes? We make the people that have better credit foot the bill and we can package up more mortgages!

It's just Boris · April 19, 2023 at 10:48 pm

Equity at work.

Anonymous · April 19, 2023 at 11:12 pm

This man and his regime are evil and hate our country.

EN2 SS · April 19, 2023 at 11:21 pm

Just wait until the fascists start trying to make the rest of us pay the mortgages that the deadbeats can’t/won’t pay. Then want us to pitch in on repairing the damage they did to the houses they can’t/won’t pay for.

    Steve · April 20, 2023 at 6:05 am

    You just reminded me of the College loan program. Deadbeats can’t/won’t pay. Joe declares they won’t have to.

    Same idea in a different venue.

Dick Tickles · April 20, 2023 at 12:48 am

The individual mandate punishes young Americans by forcing them to pay the healthcare of the old and sick, now this will punish fiscally responsible first time home buyers (again, young people) to pay for the mortgages of the irresponsible and foolish.

The anger that will be unleashed by the young, productive people of society who are having their future stolen from them will be biblical.

Welp, those who sow the wind reap the whirlwind.

anonymous coward · April 20, 2023 at 5:15 am

Punish good behavior and reward bad behavior. Sounds like a wining combination to me. *le sarcasm*

SiG · April 20, 2023 at 7:28 am

I didn’t realize until I went to the linked article that this apparently applies to mortgages only at this point. They’re not looking to charge credit card holders a higher interest rate if they have a better credit rating. Either way, one could game the system by selectively messing up their credit rating, just enough to get it below 680.

The incentive always used to be that if you had a better credit rating, you got a better rate or better treatment, but if having a better credit rating gets you punished, why bother?

A few years ago, I had a credit card drop me because I always paid my balance off every month and never paid a dime in interest. In bizarro-clown world, the incentives are different.

    Jonathan · April 20, 2023 at 9:51 pm

    My credit report says that it isn’t higher because I don’t use enough of my credit line and that I don’t have enough loans outstanding…
    I also have a debt collector claiming I owe a bill I don’t; every 6 months they hit my report by 40 points and then it bounces back.

    I don’t have any debt at this point and hope to keep it that way.

Woody · April 20, 2023 at 9:12 am

New cottage industry will be how to get your credit to 679 when purchasing a home, and then get it back to 680+.

Steve · April 20, 2023 at 12:22 pm

If I’m reading it correctly, it only applies to .gov backed loans. I don’t feel too much sympathy for anyone who takes government cheese.

Too bad it’s a trivial amount. If it were higher, more people would consider conventional mortgages, but I don’t see too many who can afford a half-million dollar house caring that much about an extra $50 a month.

    Anon · April 20, 2023 at 4:49 pm

    That’s how it starts: some limited cases. Just like income tax only applied to the very rich when first implemented. Now everyone is forced to have that burden. It doesn’t matter if the use-case is extremely limited now, it’s a foot in the door and that quickly turns into you paying an extra 50%.

      Steve · April 20, 2023 at 11:34 pm

      Sure. Long before it gets to that level, conventional, private mortgages become competitive, and no one with a high credit score (and, face it, 680 is not high) will take the government cheese. At whatever the breaking point is, there’s no one left subsidizing the low credit score applicants. At which point the government program breaks again, and maybe this time we have the sense to shut it down permanently so it doesn’t destroy the economy yet again.

      EN2 SS · April 21, 2023 at 11:24 am

      I think you need to rethink that “fact” of everyone paying income taxes. Over 40% don’t, they get money back they never pay in, including all the illegal aliens with litters.

      https://www.statista.com/statistics/242138/percentages-of-us-households-that-pay-no-income-tax-by-income-level/

    Joe Blow · April 22, 2023 at 5:43 am

    Fannie Mae? Freddia Mac? VA? Never heard of those programs, eh?

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