In the summer of 2020, the Smithsonian Institution created a chart meant to condemn what it calls “whiteness,” and it listed a number of characteristics it claimed were essential to “white culture.” Among the so-called characteristics it described in pejorative terms was the praiseworthy principal of delayed gratification, or saving for the future.
Thus, the kind of lifestyle and values that might culminate in someone having high credit scores and saving up for a significant down payment for a house were something not to be emulated or praised, but rather to be called out and declared shameful.
The ridiculous chart was withdrawn after widespread protest, but the mentality that created it lives on in Washington—the same Washington which has racked up an un-payable 31 trillion dollars of debt.
To show its commitment to equity—equal outcomes—the Federal Housing Finance Agency (FHFA) implemented a new policy on May 1, 2023, that punishes homebuyers with high credit scores who can put down at least 15–20 percent on a mortgage by making them pay higher interest rates and extra fees. According to the Wall Street Journal,
“According to calculations by Evercore ISI, buyers with strong credit scores between 720 and 739 who make 15%–20% down payments will see their rates increase by 0.750%. Borrowers who put down 20%–25% will see rates increase by 0.500%.
The winners are borrowers with weak credit scores—that is, riskier borrowers. Under current FHFA policy, a borrower with a weak credit score below 620, who is borrowing more than 95% of the value of their home, pays 3.750%. Under Miss Thompson’s new plan, those borrowers will see their fees decrease by 1.750%.”
Starting May 1, a Biden administration decree will require adjusting mortgage calculations to penalize homebuyers with a FICO credit score of 680 and above—almost two-thirds of the population.
This money taken from people with good credit will be given to people with low credit scores—i.e., risky borrowers more likely to default on mortgages.
Is this another version of the Law of Unintended Consequences, in which well-meaning government officials implement a policy without looking at the so-called bigger picture. No. The consequences here are intended. The current administration knows full well the implications of this new policy and is sending the message that the notion of creditworthiness itself is implicitly racist.
You know who you are. You have lived within your means, saved for the future, did without at times to make ends meet, paid your bills in accordance with the Bible verse “Let no debt remain outstanding” (Romans 13:8) and worked diligently for what you earn (1 Thessalonians 4:11; Proverbs 13:4;2 Thessalonians 3:10-12).
Your good credit score is a problem. You can help things by defaulting on payments and racking up large debts that you may not be able to repay in a timely manner. And buy some swamp land. Watch your credit score plummet.
This will prove you are not racist.
For now.
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