The New Mortgage Crisis- Good credit hurts you now?

So who saw the new Mortgage plan that went into effect on May 1? Cause we did. All our life we were told to be responsible with credit. Pay everything back on time and we will be rewarded with lower interest rates.

But something changed.

The new plan that went into effect will actually be beneficial to those that are a bit irresponsible with their credit.

“For example, a buyer who made a 20% down payment with a credit score of 640 would see their fee drop 0.75% from 3% to 2.25% with the updates. Another buyer, also making a 20% down payment, who has a credit score of 740, would see their fee climb by 0.375%, from 0.5% to 0.875%. “

This is in response to try and subsidize for giving loans to risky borrowers. An extra payment from “good” credit borrowers will ensure that those who are risky if they end up not paying their mortgages, the fees from the good borrowers will cover it.

What do you guys think of this? Is this fair? Should this be allowed, why or why not? If you haven't heard of this yet, what is your initial thought.

We will do our best to find alternatives to this for those who have been responsible with your credit. Doing the right thing will always matter.