Senate Republicans on Wednesday accused the Biden administration's Federal Housing Finance Agency (FHFA) of playing politics with the U.S. housing market by forcing people with good credit to subsidize high-risk mortgages, and warned that doing so would put individual homebuyers and the entire market in danger.
Sen. Roger Marshall, R-Kan., and 17 other GOP senators issued this warning in a letter to FHFA Director Sandra Thompson that also demanded the details of how this policy decision was made, a possible sign that the legality of the move could be challenged.
"This announcement, scheduled to take effect May 1, 2023, will invert the common-sense risk financing structure at the GSEs in an effort to decrease mortgage rates for riskier individuals with low credit scores and forcibly raise rates for those with higher scores," they wrote, referring to the government-sponsored entities and mortgage giants Fannie Mae and Freddie Mac. "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."
Bbbbbut, final inclusion, right? Let's have hard working folks who pay their bills subsidize the slackers. Seems about right for the zeitgeist.
