Nevada Controller Andy Matthews joined a coalition of 34 state financial officers in signing a letter to the Biden administration criticizing a new Federal Housing Finance Agency policy that will make it more expensive for people with good credit to buy homes.
Within the letter (see below), the financial officers refer to Biden’s policy as unconscionable, backwards, upside-down, a pending disaster, and confiscation of money from the hardworking, middle class:
The policy will take money away from the people who played by the rules and did things right – including millions of hardworking, middle-class Americans who built a good credit score and saved enough to make a strong down payment. Incredibly, those who make down payments of 20 percent or more on their homes will pay the highest fees – one of the most backward incentives imaginable. For decades, Americans have been told that they will be rewarded for saving their money and building a good credit score. This policy turns that time- tested principle upside down.
…the right way to solve that problem is not to use the power of the federal government to penalize hardworking, middle-class American families by confiscating their money and using it as a handout. The right way is to implement policies which will reduce inflation, cut energy costs and bring lower interest rates. Doing so will enable more families to save and improve their credit scores. Increased financial literacy efforts must also be part of the solution.
It is already clear that this new policy will be a disaster. It amounts to a middle-class tax hike that will unfairly cost American families millions upon millions of dollars. And – at a time when the real estate market has already slowed considerably due to high interest rates – it will further depress home sales. The practice by FHFA of making substantive policy changes without utilizing the federal rulemaking process is inappropriate.
In a statement released by Controller Matthew’s office, Matthew’s doubled-down: “This new policy unjustly punishes those who have acted responsibly, sacrificed and worked hard toward a secure financial future for themselves and their families,” Controller Andy Matthews said. “It is outrageous and insulting that the Biden administration would adopt a policy that perversely removes Americans’ incentives to manage their finances wisely and prudently. I’m honored to stand with my colleagues from around the country against this terrible new policy.”2023-Biden-Mortgage-Letter67
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