WASHINGTON, D.C. - Today, U.S. Senators Thom Tillis (R-NC) and Roger Marshall, M.D. (R-KS) led a letter with 16 Republican senators to the Biden Administration’s Federal Housing Finance Agency (FHFA) Director Sandra Thompson expressing outrage at Thompson’s proposal to penalize Americans who have managed their money responsibly in order to subsidize high-risk borrowers with low credit.
“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 pushing far-left policies that ignore basic economic principles and will make the American dream harder to obtain for many hardworking families. I will continue to work with my colleagues to do everything in our power to stop this absurd proposal.”
In their letter, the senators voiced concerns on how far-left proposals like these set a dangerous precedent.
“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 senators wrote. “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.”
Read the full letter HERE.