GOP Fights Back Against Biden’s ‘Socialist’ Mortgage Scheme
In a bold move against the Biden administration’s new mortgage lending rules, the Republican-controlled House of Representatives passed a bill on Friday to overturn the White House’s unilateral act of administrative socialism.
Named the “Middle Class Borrower Protection Act,” the bill was supported by all Republican House members and 14 Democrats, bringing the voting tally to a decisive 230-189. This bill nullifies the Federal Housing Finance Agency’s (FHFA) alterations to the up-front loan level pricing adjustments. These recent changes directly impacted Fannie Mae and Freddie Mac, two leading names in mortgage guarantee for single-family homes.
The legislation was instigated by an outcry from Republicans and housing experts who chastised the FHFA’s plan as a socialist ploy. Rep. Warren Davidson (R-OH) originally introduced the bill, arguing that the mortgage rule discriminated against responsible citizens. “Why would you punish people by making it more expensive for those who have been most responsible?,” Davidson questioned, thereby setting the stage for the eventual overturn.
Rep. Tom Emmer (R-MN), the Majority Whip and an original cosponsor echoed Davidson’s sentiment. Emmer condemned the Biden administration’s credit score redistribution plan as socialism and stood firmly against it. He claimed, “House Republicans stood 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.”
This bill’s passage will have an important impact on middle-class Americans. It aims to protect these hardworking individuals who, under the new Biden rule, would be subsidizing high-risk borrowers. Emmer further criticized the current Democratic party’s economic ideologies: “The sad part about it is today’s Democrats advocate for a completely different economic policy.”
Despite the GOP’s strong opposition, some Democrats, including House Minority Leader Hakeem Jeffries (D-NY), argue that the Biden administration’s mortgage rule supports the middle class. Jeffries claimed he believes the goal is to sustain affordable homeownership, which he considers integral to the American middle-class lifestyle.
The bill’s fate in the Senate is uncertain. However, sources suggest that moderate Democrats, especially those facing re-election in 2024, might align with Republicans, potentially paving the way for its approval. If passed, it would land on President Biden’s desk, who would be virtually certain to veto the measure.
Emmer is confident that the bill is a popular choice among Americans, asserting that feedback from his district showed the mortgage rule’s widespread unpopularity. He relayed that 93% of their surveyed constituents disagreed with Biden’s policy.
In the end, this legislation is more than just a reversal of a mortgage rule. It symbolizes the triumph of fiscal responsibility and fair play. The bill speaks volumes for the GOP’s stand against socialist policies that penalize hard work and financial prudence.
Rep. Tom Cole (R-OK) summed up the GOP effort by declaring, “President Joe Biden is sending a clear message that hard work and financial responsibility do not matter.”
