On Wednesday, U.S. Senator Roger Marshall, M.D. and U.S. Senator Thom Tillis (NC) led a letter with 16 Republican senators to the Biden Administration’s Federal Housing Finance Agency (FHFA) Director Sandra Thompson. This letter expressed the senators’ outrage at Thompson’s proposal to penalize Americans who have managed their money responsibly in order to subsidize high-risk borrowers with low credit.
“Just when you thought Joe Biden couldn’t be more out of touch with the hardships Americans are facing due to his failed economic agenda, skyrocketing interest rates, and record high Bidenflation, he doubled down, now penalizing responsible Americans with good credit scores,” Senator Marshall said. “This is illogical. The Biden Administration must answer for why they are punishing Americans who have diligently met their financial obligations and earned higher credit scores.”
“This proposed rule by the Biden Administration is a gross injustice that penalizes hard-working Americans who are financially responsible,” said Senator Tillis. “This is yet another example of President Biden working to kill the American dream for hardworking families. I will continue to work with my colleagues to do everything in our power to stop this absurd proposal.”
Proposals like these set a dangerous precedent. In their letter, the Senators wrote in part,
“This shortsighted and counterproductive policy demonstrates a profound misunderstanding of the necessity of accurately tailoring housing finance products to credit risk and establishes a perverse incentive that punishes hardworking Americans for their fiscal prudence,” the letter said. “Under your leadership, FHFA has pushed forward a number of policy proposals and changes that seek to social-engineer the U.S. housing market in ways that increase riskiness and promote discrimination…The fact that a proposal flaunting credit risk is being openly pushed by FHFA just a decade-and-a-half after the housing-led 2008 financial crisis is staggering…The housing market should not be exploited as a means to pander to targeted demographics that you have chosen, nor an instrument to secure political favoritism.”
U.S. Senators Mike Braun (IN), Ted Budd (NC), Shelley Moore Capito (WV), Tom Cotton (AR), Kevin Cramer (ND), Lindsey Graham (SC), Chuck Grassley (IA), Ron Johnson (WI), James Lankford (OK), Jerry Moran (KS), Mike Rounds (SD), Marco Rubio (FL), Eric Schmitt (MO), Rick Scott (FL), John Thune (SD), and Todd Young (IN) joined Senators Marshall and Tillis on their letter to the FHFA.
You may click HERE to read the full letter.