Governors from 18 states sent a letter to President Biden on Wednesday asking him to revoke a new housing policy that forces people with good credit scores to subsidize mortgage loans of higher-risk borrowers.
At the start of May, the Federal Housing Agency (FHFA) implemented a loan-level price adjustment, which overcharges good credit borrowers and undercharges bad credit borrowers. The plan intends to help low-income borrowers afford monthly mortgage payments by forcing financially responsible Americans to pay more every month for their mortgages.
As first reported by The Center Square, Missouri Republican Gov. Mike Parson along with Georgia Republican Gov. Brian Kemp are leading the resistance against the 'backward policy' that "only serves to punish hard-working Americans."
The letter says that disincentivizing good credit behavior and penalizing responsible Americans during an inflation crisis is wrong and unreasonable.
"As governors, we promote hard work, accountability, fairness, and opportunity for all our citizens. The LLPA mandates blatantly contradict these goals. Therefore, we request you rescind the updated LLPA immediately. If you are unwilling to do so, Congress must take action."
The letter was signed by governors from Alabama, Arkansas, Georgia, Idaho, Indiana, Iowa, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, Ohio, South Dakota, Tennessee, Texas, Utah and Wyoming signed the letter.
The letter also mentioned that the Federal Reserve increased interest rates 10 consecutive times in a year, another reason Americans' personal finances should not be targeted.
When the policy was enacted last month, state treasurers and other top finance officials from 27 states called on the White House to revoke the "unconscionable" policy
Economic leaders representing over half of America along with over one-third of America's governors are opposed to this discriminatory approach to mortgage loans. But as we see from the depths of Washington, it doesn't matter.
How many times can We the People be hushed into destructive policies by the all-too-powerful executive branch?
Our government's behavior won't change until our reaction changes. The most appropriate response is hidden within Article V of the Constitution.
Please support the Convention of States movement in our efforts to rein in the powers of the federal government. Sign the petition below.