Mortgage fees usually induce yawns and glazed-over eyes. But when word began circulating last month that updated pricing would cost some home buyers more, it resulted in viral TikTok videos with thousands of outraged comments misinterpreting the new rules.
Many critics raised similar questions: Why were some borrowers with lower credit scores and down payments receiving improved pricing on their mortgage rates, while others with high credit scores and larger down payments were being charged more? Are responsible borrowers subsidizing riskier loans?
The changes made the rounds on cable television, even landing a spot on Tucker Carlson’s final show on Fox News, where he claimed that they were going to provide incentives for bad behavior. But much of the controversy focused on the winners and the losers of the pricing updates — and not the fact that the most creditworthy borrowers with large down payments would still pay much less. To clear up any confusion, the federal regulator behind the new pricing had to issue a statement: Sparkling credit still pays.
“You still get a better rate and loan pricing if you make a higher down payment and have better credit,” said Bob Broeksmit, president and chief executive of the Mortgage Bankers Association, an industry trade group.
Mortgage Fees (Seriously) Spurred Outrage on TikTok. Here’s Why.
