Biden’s New Mortgage Rule Might Get Overruled

According to reports, Representatives Warren Davidson(R) and Patrick McHenry(R) of the Republican Party threatened to take measures if the Biden administration fails to roll back its decision to raise mortgage rates for homeowners with excellent credit.

If the Federal Housing Finance Agency (FHFA) doesn’t rescind the new clause, Republican leaders in the House Committee on Financial Services, led by Chair McHenry of North Carolina, and the Housing and Insurance Subcommittee, led by Chair Davidson of Ohio, have promised to do so legislatively. 

It’s a redistribution of wealth, and it’s Socialism, Davidson said in a public statement. The FHFA must overturn this regulation, or Congress will have to do it

In a letter to FHFA director Sandra Thompson, the two chairs said that the recent adjustments violate the fundamental tenet of risk-based pricing, namely, that less-risk customers should pay a lower rate for accessibility to credit versus higher-risk borrowers.

This new tax would encourage homeowners to make smaller down payments and take on more debt.  It violates the most fundamental fairness test.

Reports show the average increase in the monthly payment for a $400,000 mortgage for borrowers with credit scores of 680 and higher would be $40. 

The biggest price hikes would affect first-time purchasers who put down between 15 and 20 percent. 

Only homebuyers who close on or after May 1 will be subject to the new costs.  

During an interview with Fox News Digital, the vice chair of the Republican Main Street Caucus, Rep. Stephanie Bice (R-OK), accused Vice President Joe Biden of fostering a “culture of dependency” and criticized the White House for imposing additional rules without consulting Congress.

Bice claims that the Biden Administration is trying to fundamentally alter how our nation is run by bypassing Congress and using the power of the pen to implement policies such as student debt forgiveness and new mortgage regulation. 

Bice stated that no one should be punished for making responsible financial choices, nor should the government provide incentives for lowering credit ratings.

She has the support of at least six additional Republican senators and representatives for her measure.