Payam Javan: A new Biden administration rule will penalize home buyers with a FICO credit score of 680 or above, according to a Federal Housing Finance Agency rule change that takes effect on May 1.

The rule hits Americans trying to refinance mortgages as well. The change will hit those buyers with what are called loan-level price adjustments, which will increase their monthly payment.

Buyers with lower credit scores get lower fees under the plan, which has caused controversy among mortgage companies and CEOs.

The rule was created to try and narrow the gap in access to credit, especially for minority home buyers. However, critics argue that it punishes people who have good credit scores and a history of paying their bills on time.