Financial officers from 27 states issued a letter to President Joe Biden protesting a new policy from the Federal Housing Finance Agency (FHFA) that increases mortgage fees for some higher-credit borrowers while lowering them for more risky borrowers.
This policy, which critics say will penalize people with good credit and encourage risky borrowing, went into effect on May 1. It may also penalize some borrowers who put down a larger down payment when buying a home.
According to a letter to the FHFA and the Biden White House, signed by 34 officials from 27 states, the new FHFA policy “will take money away from the people who played by the rules and did things right—including millions of hardworking, middle-class Americans who built a good credit score and saved enough to make a strong down payment….