Real estate expert shreds Biden rule punishing homebuyers with good credit: 'It's madness'

A new rule from the Biden administration will have good-credit home buyers paying more monthly to subsidize costs for high-risk buyers. 

The changes, which will begin in May, have many experts worried about the impacts both on buyers and the economy. 

Real estate expert and Madison Ventures+ managing director Mitch Roschelle unpacked the "madness" on "Varney & Co." on Thursday. 

"It's bizarro world," he said. "That fee that's charged, PMI, which is personal mortgage insurance, that fee that FHA [Federal Housing Administration] charges is intended to punish those with lower credit scores and riskier loans to basically level the playing field from a risk perspective. Well, what are we doing? We're doing the opposite."