'Just Miss A Few Payments, Screw Up Your Credit Score': Peter Schiff Slams Biden...

Mortgage fees are changing under the new rules from the Biden administration’s Federal Housing Finance Agency. Because some borrowers with good credit may end up paying higher fees compared to those with lower credit scores, the change has sparked a discussion.

Among the critics is Peter Schiff, CEO and chief global strategist at Euro Pacific Capital.

During an interview posted on Schiff’s YouTube channel, the host shared his intention to buy a home but voiced concerns about getting punished if the plan goes through because of his good credit score.

Schiff’s response was, “Just miss a few payments, screw up your credit score. That will help your mortgage rate.”

Schiff, who successfully predicted the financial crisis of 2008, pointed out the issues with this change.

“This new rule encourages people to make smaller down payments than they might otherwise have made,” he said. “Normally, if you make a big down payment, you get a better rate. But now, Biden wants the better rates to go to people that don’t make a big down payment.”

While the new rule could lead to more people becoming homeowners, it does not bode well for America’s banks, according to Schiff.

“The worst part about this is that it’s going to further undermine the solvency of our banking system because banks are going to be encouraged and actually required to make more loans to riskier borrowers, which means more mortgages are going to end up in default,” Schiff warned.

To be sure, buying a house can be quite a burden in today’s environment.

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