BISMARCK – U.S. Senator Kevin Cramer, R-ND, joined Senators Roger Marshall, M.D., R-KS, and Thom Tillis, R-NC, in sending Sandra Thompson, Director of the Federal Housing Finance Agency, a letter in fierce opposition to a policy which would penalize Americans who responsibly manage their money.
The proposal, slated to go into effect on May 1, would hike upfront fees for individuals with credit scores above 680 to subsidize high-risk borrowers. Senator Cramer outlined his concerns at Wednesday’s Banking Committee hearing.
“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,” wrote the senators.
“Our housing system rests on the bedrock principles that individual financial responsibility should be rewarded and that accurately-tailoring financial products to the risk-profile of a consumer is necessary to ensure safety and soundness for the entire system,” they continued. “Your proposal, however, brazenly contradicts these core tenets by penalizing those who have diligently met their financial obligations and earned higher credit scores. FHFA’s misguided rule will distort the cost of lending in U.S. housing markets, making the entire system less efficient and costlier for all Americans.”
Joining Senators Cramer, Marshall, and Tillis are Senators Mike Braun (R-IN), Ted Budd (R-NC), Shelley Moore Capito (R-WV), Tom Cotton (R-AR), Lindsey Graham (R-SC), Chuck Grassley (R-IA), Ron Johnson (R-WI), James Lankford (R-OK), Jerry Moran (R-KS), Mike Rounds (R-SD), Marco Rubio (R-FL), Eric Schmitt (R-MO), Rick Scott (R-FL), John Thune (R-SD), and Todd Young (R-IN).
