OPINION:
I was shocked by “Biden to hike payments for good-credit homebuyers to subsidize high-risk mortgages” (web, April 18).
We are now encouraging people to behave badly by penalizing those who act responsibly.
I was raised in an orphanage in Philadelphia but I have probably had a credit score above 800 most, if not all, of my adult life. Now I read that people who have a 680 or higher credit score will be penalized so the banking industry can subsidize those who have acted irresponsibly when they want to buy a house.
The article notes that a mortgage of $400,000 will cost good-credit buyers an additional $480 a year for the life of the mortgage. I’m amazed there’s not a penalty for people who buy their houses with cash, since people able to make large down payments are going to be even more penalized.
I hope someone files a federal lawsuit against this because to me this is an illegal tax as well as bad fiscal policy by the Federal Housing Finance Agency. Congress is too stupid or cowardly to stop it. Following the logic of the FHFA, we will soon see people being given lower interest rates on their credit cards if they have bad credit, as well as their getting a better deal on financing their cars. People like me will be required to finance their bad lifestyles.
I am sure Ben Franklin — who coined the term “A penny saved is a penny earned” — would be crying if he were alive to hear about this. Remember, if you reward bad behavior, you get more of it. This will destroy what is left of our economy since there will be every incentive to be financially irresponsible.
Cmdr. WAYNE L. JOHNSON
Judge Advocate General’s Corps, U.S. Navy (retired)
Alexandria, Virginia
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