‘Rich Dad, Poor Dad’ author Robert Kiyosaki has criticized President Joe Biden, apparently on his mortgage plan that permits consumers with lower credit ratings to get better mortgage rates.
What Happened: “Biden rewards people with poor credit & punishes people with good credit,” Kiyosaki tweeted.
New rules from the Federal Housing Finance Agency, or FHFA, will permit consumers with lower credit ratings and less down payment funds to qualify for better mortgage rates than they otherwise would have. However, the costs are anticipated to be passed on to buyers with good credit, a report had earlier explained.
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Mortgage industry experts believe homebuyers with credit scores of 680 or higher will pay, for instance, close to $40 a month more on a home loan of $400,000, said a report by The Washington Times.
Kiyosaki, who has written in detail about real estate, cited his own example, saying how he had been irresponsible and had bad credit in the past. “Being punished for having bad credit was life lesson for me,” he argued in his tweet.
Last month, an Obama-era housing official reportedly called Biden’s mortgage plan an “unprecedented move” and said that it is “not the way” to bring in more buyers. “We can do better programs to help more minorities get into home-ownership. This is not the way to do it,” said former FHFA Commissioner David Stevens.
Meanwhile, State treasurers and top finance officials from 27 states have urged Biden to end what they said was his “unconscionable” policy of pushing people with good credit scores to subsidize mortgage loans of higher-risk borrowers, according to a report by Fox Business.
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