I just heard about this new rule from the Biden administration. They’re saying that banning unpaid medical bills from showing up on credit reports could help more people buy homes. Apparently, they think it might lead to 22,000 extra mortgages each year!
I’m curious what you all think about this. Does it seem like a good idea? Could it really make that big of a difference for people trying to get mortgages? And are there any downsides we should consider?
Let me know your thoughts! I’d love to hear different perspectives on this.
This rule could indeed boost homeownership, but it’s not without potential issues. While it may help some individuals qualify for mortgages, it doesn’t address the underlying problem of high healthcare costs. There’s also the question of how lenders will adapt their risk assessment models. They might become more stringent in other areas to compensate for the lack of medical debt information. Additionally, this change could potentially lead to increased mortgage defaults if people who truly can’t afford homes are approved based on artificially inflated credit scores. It’s a complex issue that requires careful consideration of both the benefits and potential unintended consequences.
sounds gud, but wont it just mask financial problems? ppl with medical debt might still struggle w/ mortgage payments. plus, lenders mite get stricter elsewhere to balance it out. cud lead to more foreclosures if folks get homes they cant rly afford. jus my 2 cents
Interesting question, Luna79! I wonder how this might affect overall credit scores. Could removing medical debt make other debts more impactful? And what about people who’ve already paid off medical bills - would they feel it’s unfair? Curious to hear others’ thoughts on potential ripple effects!