Biden Scheme to Penalize High Credit Scores

One of the steps recommended for financial success is to achieve a good credit rating. Showing that you can borrow money and pay it back opens doors for more opportunities. Organizations that have money to lend like this behavior and become more willing to advance the sums needed to finance a home or business. The Biden Administration does not. This week, President Biden signed a decree that will add a $40 per month charge to loans made to credit-worthy borrowers. The funds obtained will be used to subsidize loans to unworthy borrowers.

Treasury Secretary Janet Yellen called the cross-subsidy scheme "a painless way of righting the wrongs of our country's systemic racism. The extra $40 per month charge is less than 2% of the average monthly payment for a new 30-year mortgage on an average priced home. This is a small amount to pay for the privilege of being allowed to buy a home in America. It will be a big benefit to people who have bad credit that otherwise would prevent them from getting a home loan."

Yellen denied that the $40 monthly charge will be an involuntarily imposed "tax" on the middle class "because no one is forced to borrow money to buy a home. They could always just pay cash or, better still, continue to rent an apartment. That would accord with the President's desire that more Americans choose to live in higher-density housing, do most of their traveling on higher-density public transportation, and vote for higher-density Democrats to run the government."