Article originally appeared on www.foxnews.com.
A Biden administration rule that will have homebuyers with good credit pay more to subsidize riskier borrowers may have a disproportionate impact on Asian Americans, who already face barriers to qualify for home lending.
Under new rules from the Federal Housing Finance Agency set to take effect May 1, borrowers with lower credit ratings and less money for a down payment will qualify for better mortgage rates than they otherwise would have, while those with higher ratings will pay increased fees.
But the burden of the new rules may disproportionately fall on Asian American homebuyers, who as a group have credit ratings that are better than any other racial demographic. According to a report by Investopedia, Asian Americans, who have an average credit score of 745, are the only racial demographic with a rating classified as “very good” by widely used FICO …
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