Republicans are fighting to end this Biden rule that brings socialism to the mortgage market

Photo by Gage Skidmore, CC BY-SA 2.0, via Wikimedia,

Joe Biden and the Democrats are destroying the economy and making it impossible for Americans to live.

The Fed is pushing rate hikes that only make matters worse.

But Republicans are fighting to end this Biden rule that brings socialism to the mortgage market.

Biden rule penalizes people with credit scores of 680 or higher

In April of this year, President Biden created a rule that changed the way Americans would be treated when buying a home. The rule effectively forces Americans with higher credit scores to pay a higher interest rate on mortgages when buying a new home or refinancing an existing loan.

Under the rules issued by the Federal Housing Finance Agency (FHFA), people with a credit score of 680 or above would pay more, while people below the threshold would be offered much better rates. People who had more money for down payments would also be punished with newly imposed fees.

Former Commissioner of the Federal Housing Administration, Davide Stevens, said that it was a “blatant and significant cut of fees for the highest risk borrowers and a clear increase in much better credit quality buyers,” before adding that people would see it as a “cross-subsidy.”

Stevens was right in his assessment and the American people saw it as a slide toward socialism.

Republicans are pushing back on the rule with “Middle Class Borrowers Protection Act”

Republicans in the House of Representatives are taking a step towards undoing the rule that left middle-class Americans at a disadvantage. Last week, Republicans introduced the “Middle Class Borrowers Protection Act” to effectively cancel the rule created by the FHFA. 

Under the bill, there would no longer be “up-front loan level pricing adjustments charged by Fannie Mae and Freddie Mac for guarantee of single-family mortgages.” Republican Majority Whip Tom Emmer called the move “socialism at its finest” and declared conservatives won’t stand by and watch it happen. 

Emmer said the rule was “credit score redistribution” and urged his fellow Republicans to stand up for “hard-working Americans today by voting to eliminate this horrific rule and ensure those with good credit are not forced to bankroll high-risk borrowers.”

Democrats took the time to attack Republicans for standing with Americans.

Biden and Democrats are being “disingenuous” about helping the middle class

“President Biden and House and Senate Democrats are actually standing up for the middle class and those who aspire to be part of it and trying to make sure that things traditionally associated with a middle-class lifestyle like homeownership” are attainable, House Minority Leader Hakeem Jeffries said.

Jeffries went on to claim that “Extreme MAGA Republicans are doing everything they can to undermine the economic progress that President Biden has made in this country because if President Biden is for it, they’re against it.” However, no one believes Jeffries or Biden are doing the right thing.

“I think the President is either unaware of what the policy really does or he’s being disingenuous about the fact that it’s going to help the middle class,” Emmer said, before adding that “if you look at the 6th District of Minnesota, 93% of them disagree” with Biden’s new rule on mortgages.

Patriot Political will keep you up-to-date on any developments to this ongoing story.