Starting May 1, a new rule from the Federal Housing Finance Agency (FHFA) will go into effect that experts say will force good-credit home buyers to pay more for their mortgages to subsidize loans to higher-risk borrowers. The move has raised concerns among some in the industry who argue it will ultimately hurt those it intends to help.

Biden rule will redistribute high-risk loan costs to homeowners with good credit https://t.co/K917usr6UO

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Under the new rules, borrowers with a credit score of around 680 would pay approximately $40 more per month on a $400,000 mortgage. The additional costs will be used to help subsidize people with lower credit ratings who are also seeking mortgages. According to a recent Washington Times report, this change has many in the industry scratching their heads.

“The changes do not make sense. Penalizing borrowers with larger down payments and credit scores will not go over well,” said Ian Wright, a senior loan officer at Bay Equity Home Loans. “It overcomplicates things for consumers during a process that can already feel overwhelming with the amount of paperwork, jargon, etc. Confusing the borrower is never a good thing.”

Many in the industry believe that this move could ultimately backfire and hurt those it is intended to help. While the new rules are meant to provide access to credit for borrowers who might not otherwise qualify for a mortgage, some experts worry that it could end up costing those borrowers more in the long run.

For now, it remains to be seen how the new rules will impact the mortgage market. But one thing is clear: the Biden administration’s move to force good-credit home buyers to pay more for their mortgages is sure to spark some heated debates in the months to come.