May 08, 2023

Scott Challenges Biden Administration on Harmful Mortgage Pricing Changes

Washington, D.C. – U.S. Senator Tim Scott (R-S.C.), Ranking Member of the Senate Committee on Banking, Housing, and Urban Affairs, is seeking answers from the Federal Housing Finance Agency (FHFA) about its controversial changes to mortgage financing. In a letter to FHFA Director Sandra Thompson, Ranking Member Scott demanded evidence from the agency to support Director Thompson’s recent claim that changes to mortgage financing will “more accurately align pricing with the expected financial performance and risks of the underlying loans.” The Ranking Member highlighted that the agency has provided no analysis to support this statement and expressed concern that its previous actions under Director Thompson’s leadership have, in fact, muddied the crucial relationship between credit risk and credit scores.

“We have already seen how the Biden administration’s failed economic policies have spurred inflation and hurt markets,” said Ranking Member Scott. “I’m concerned that recent actions taken by Director Thompson simply create additional risk and could result in more families struggling to make homeownership a reality. The road to homeownership doesn’t end when you receive a mortgage—we must ensure that federal housing policy is risk-based and sustainable in the long run.”

Ranking Member Scott requested answers and a staff briefing to be provided by no later than May 19, 2023.

Read the full letter here.