So it’s really an issue of imprecise title, but the issue is still highly immoral and likely illegal based on the taking clause and the highly discriminatory and unequal nature, regardless.

The title should have been more like about how the fees, i.e., marginal rates, for higher risk borrowers is being charged to lower risk borrowers. No moral or ethical person could support this, regardless of benefit of penalty. It is indefensible, short of making it voluntary so all the virtue signalers can choose to put their money where their mouth and self-righteousness it. It is still a system to punish good and reward bad.