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Sens. Marshall, Tillis Lead Letter to Biden Administration Blasting Proposal to Subsidize High-Risk Borrowers with Low Credit Scores

Posted on Wednesday, April 26, 2023
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by Outside Contributor
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Biden

(Washington, D.C.) – Today, 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.

Click Here to Read the Full Letter

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Samuel
Samuel
1 year ago

… the last attempt at financial cross-subsidization (e.g., debt securitization; the “high speed swim-lane”), the DOW plunged to 7 thousand, George Bush Jr. rode off into the west Texas sunset, tail between his legs, and we wound up with, Barack Obama and Joe Biden, the both of whom flunked Economics 101, miserably so –

Mimi
Mimi
1 year ago

Giving credit preference to people who already can’t manage their finances, is going to be a complete disaster.

Barbara P. Turner
Barbara P. Turner
1 year ago

Mumbling old FOOL IS WHAT HE IS!!! He’s insane! Get him out! NOWWWWW!!!!

mikem
mikem
1 year ago

why does the left reward deadbeats and punish responsible americans. seems to me the responsible people are the ones who should be rewarded.

Kay
Kay
1 year ago

Just more of the same from this administration. The whole point of these policies is to destroy the middle class in an effort to bring down our country. That’s also the reason for their woke policies as well as their “green” nonsense .

Jack
Jack
1 year ago

Several of these are Rino senators who b***h and complain about this crap, but then turn around and vote for the big spending (omnibus) bills! What a useless bunch of phonies, I’m sick of their talk, but no action!

Andre Bixby
Andre Bixby
1 year ago

I would question WHY, aren’t all GOP members signing that letter? WHY hasn’t the house attempted to do anything to block this rule from the fantasy land king of corruption, Crooked Joe?

Stephen Russell
Stephen Russell
1 year ago

END this now gonna cost business

Jackie
Jackie
1 year ago

I have worked so hard and sacrificed so much in order to get and keep my credit score that I was told, as a young person, was the right thing to do and I am (or was) very proud of!! But now I, as a senior citizen, who is already struggling with the Biden administrations policies, laws and rules, his inflation and his ridiculous ideas like this one, am wondering why I bothered??? I, as this senior citizen, am now going to be punished by the Biden administration and, I, who is still, at 74, paying for my home, am going be required to assist someone else to buy their home who really can’t afford one and isn’t prepared for the fiscal issues it takes to own a home!! I, a senior citizen, am running out of the money that I had saved but still have to share with some unknown person? I don’t know how long I have to live but I don’t feel like I have enough money to be sharing according to Biden’s new “rule”!!! I also wonder how many of these people will be illegals allowed in our country by this administration!!!

Morbious
Morbious
1 year ago

Socialism never brings people up. It always brings productive people down to the level of the undeserving poor. Ultimately everyone is in the same bread line except party members. They shop in separate stores.

MariaRose
MariaRose
1 year ago

I am all for helping people with low credit scores overcome the problem which they caused themselves but it doesn’t mean passing the loss that the creditors get on to those of us who LEARN (sometimes the hard way) to control what causes our credit to slide. I already pay a higher premium cost for car insurance and higher medical expenses because those companies want to cover their expense from the reckless drivers and the small percentage of individuals who use the majority of medical coverage, The companies that caused this problem of lending subprime loans that have balloon payments and caused all the foreclosures. I don’t own a home, but I tried to buy one using the plan when I would have a lower upfront downpayment with more money put into the mortgage loan over a 30-year period, but I realized that it was not going to be the same monthly payment for all 30 years but would rise after the first 5 years into a substantially higher monthly payment so I pulled out. Many people don’t realize this when facing all that paperwork for procuring a mortgage loan. Biden does NOT need to pass this problem of misrepresentation using the claim of “equity”.
Sure, help get people into homes by educating them on how to budget their money properly. Stop allowing property values of homes beyond the real value of the property. But once again, Biden is trying to take the cost incurred by lenders to appear as if he is helping people to gain “equity” but just passing the buck of the cost to others.

Tom
Tom
1 year ago

We, the people who built this country are sick and tired of losing our hard earned money redistributing it to people who have made bad decisions. One grows thru experience. Not by getting bailed out at every corner

Annie
Annie
1 year ago

this administration is just plain nuts

Word of Truth
Word of Truth
1 year ago

Senile Biden doesn’t seem to remember the financial meltdown of 2008 when people were given loans for houses they couldn’t afford.

johnh
johnh
1 year ago

This reeks of Socialism & is another example of giving money to people to make them more dependent on govt. to bail them our. History of the 2008-09 meltdown due to bad loans was only 15-years ago.

johnh
johnh
1 year ago

What has Biden admin learned from the recent Silicon Bank failures & banks making bad management/economic decisions. Most people would understand that you cannot borrow money at interest rate of 3% and then lend it to other people for 2%.

A Voter
A Voter
1 year ago

Here we go. 2008 Part Deux!

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