Biden rules penalizing borrowers with good credit starts today

SIOUX FALLS, S.D.(KELO)- It seems to break the rules on borrowing.

The Biden Administration is rolling out new policies that penalize borrowers with good credit scores.

In exchange, borrowers with lower scores will see reduced fees on their mortgages.

Josh Osborne of Cross Country Mortgage of Sioux Falls says it’s a break from past practices, but the impact should be small.

Osborne says there isn’t much anyone can do about it.

Thankfully, the changes will only have a small impact on payments.

On a more positive note, Josh Osborne of Cross Country Mortgage in Sioux Falls says some are predicting lower rates for later this year.

The new rules go into effect today.