Biden's proposed mortgage policy hits pushback from 27 states
West Virginia Treasurer Riley Moore and Utah Treasurer Marlo Oaks explain why they signed a letter opposing President Biden's 'unconscionable' policy, which they argue will punish Americans who have high credit scores.
Treasury officials from 27 states are pushing back against President Biden’s proposed rule that they argue would punish homebuyers who have good credit.
West Virginia Treasurer Riley Moore (R) called the proposal "absolutely insane."
Biden’s mortgage rule would force homebuyers with good credit to pay higher fees to subsidize those who have poorer credit. The opposing treasury officials wrote a scathing letter condemning the rule.
"The policy will take money away from the people who played by the rules and did things right," the letter reads. "We urge you to take immediate action to end this unconscionable policy."
GOP BILL WOULD REPEAL BIDEN POLICY FORCING PEOPLE WITH GOOD CREDIT TO SUBSIDIZE HIGH-RISK MORTGAGES
Moore argued on "Fox & Friends" Tuesday the policy will create perverse incentives.
"This is kind of typical of the liberal equity agenda where there's rules in place and when they don't get the outcomes that they desire, ‘Well, let's change the rules, right?’ It doesn't make any sense," he told host Steve Doocy.
The policy impacts homebuyers who have a credit score between 740 and 759. A Bankrate analysis showed homebuyers with a $350,000 mortgage and 20% down will see fees increase by about $1,300.
President Joe Biden speaks about the economy at the International Union of Operating Engineers Local 77 facility in Accokeek, Maryland, on April 19, 2023. (JIM WATSON/AFP via Getty Images)
Utah Treasurer Marlo Oaks (R) said it's "amazing" the policy was suggested at all.
"It really is counter to the American way of doing business. We teach people, as part of our financial literacy efforts here in the state to pay off your debts and increase your credit score and you'll be in a position to borrow money," Oaks explained. "And now this flies in the face of that."
"And it's another example of what I call the ‘invisible fist of the marketplace’ coming in and punishing people who are trying to do the right thing."
The proposal has faced pushback from both sides of the aisle, with an Obama-era housing official speaking out against the "unprecedented" plan.
Moore warned the proposal could spark a situation similar to the 2008 housing crisis.
"We are potentially putting ourselves in the exact same position where people are in homes who likely really should not have been saddled with those type of mortgages, and they went belly up," Moore explained.
"All in the name of woke capitalism and the liberal equity agenda, putting people in a very unfair position. And then at the end of the day, I'm sure the federal government is going to swoop in and bail everybody out."
Oaks agreed, saying there will not be a good outcome from this "social justice" policy that gives mortgages to people who cannot afford them.
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"We're going to see the federal government come in with some kind of program to save us all from a bad policy that they implemented," Oaks said.
"This is crazy."
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