‘Disaster’: State Financial Officers Slam Biden Admin’s ‘Upside Down’ Mortgage Policy

A new Federal Housing Finance Agency policy that took effect Monday “will have the net effect of making it significantly more expensive for people with good credit to buy houses,” according to almost three dozen state financial officers.

Thirty-four state financial officers shared their “deep concern with the new Federal Housing Finance Agency policy” in a letter sent Monday to President Joe Biden and Sandra Thompson, director of the Federal Housing Finance Agency. The agency announced the policy in January.

“This new policy will force homebuyers with good credit to pay more on their mortgage every single month,” the letter says. “In other words, 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.”

“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 letter adds.

“It is already clear that this new policy will be a disaster,” the letter also said.

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