Dear Friend, 

You’ve read the headlines: more and more Americans feel that homeownership is out of reach.
New listings are becoming scarce. Unbelievably, most Americans couldn’t afford to buy their own homes in today’s market.

How has the Biden administration responded? By making home prices higher for potential homebuyers with good credit.

Recently, the Biden administration implemented a Federal Housing Finance Agency (FHFA) rule that will force qualified homebuyers with good credit to pay higher mortgage rates and fees to subsidize high-risk borrowers. The new rule went into effect on May 1st and requires homebuyers with credit scores of 680 and above to pay approximately $40 more per month on a home loan of $400,000. This fee shift will result in qualified borrowers being forced to pay thousands in additional fees over the course of the mortgage repayment.

Congressman Tom Emmer discusses the Middle-Class Borrower Protection Act

Our office surveyed constituents in Minnesota’s Sixth Congressional District, and the results were staggering. Out of the 6,000 respondents, an overwhelming 93% disagreed with the administration’s credit score redistribution plan. They firmly believe, as do I, that it is fundamentally wrong to penalize those who have diligently worked hard to build strong credit in order to subsidize risky borrowers.

Any rule that encourages people to borrow beyond their means is a bad one. That is why we were proud to cosponsor the Middle-Class Borrower Protection Act. This bill would repeal the recent FHFA rule change to mortgage pricing, freeze any future mortgage pricing changes pending a review by the Government Accountability Office, and bring public accountability to all future mortgage pricing changes.

Last week, the House of Representatives passed the Middle-Class Borrower Protection Act. By doing so, we hold the FHFA accountable and prevent the Biden administration from putting Americans’ futures—and the health of our economy—at risk.

As always, we remain committed to representing your concerns and fighting for a future where homeownership is attainable for all who strive for it. Should you have any questions or require further information, please do not hesitate to reach out to my office.

Sincerely,