CFO Jimmy Patronis signs letter condemning Biden administration housing rule
TALLAHASSEE, Fla. (FLV) – Florida Chief Financial Officer Jimmy Patronis reportedly signed onto a letter condemning the Biden administration’s recent rule to require good-credit home buyers pay higher mortgages to subsidize loans to higher-risk borrowers.
Dozens of state financial officers sent a letter to President Joe Biden and the Federal Housing Finance Agency director.
The group called the “unconscionable” policy a “disaster” that will “unfairly” cost American families millions of dollars.
“This new policy will force homebuyers with good credit to pay more on their mortgage every single month,” the joint letter said.
“In other words, the 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.”
However, Federal Housing Finance Agency Director Sandra Thompson said in a statement that higher-credit-score borrowers are not being charged more so that lower-credit-score borrowers can pay less.
“The targeted eliminations of upfront fees for borrowers with lower incomes – not lower credit scores – primarily are supported by the higher fees on products such as second homes and cash-out refinances,” Thompson said.
The letter to the Biden administration stated that those who make down payments of 20 percent or more on their homes will pay the highest fees.
“For decades, Americans have been told that they will be rewarded for saving their money and building a good credit score. This policy turns that time-tested principle upside down,” the letter said.
The letter acknowledged that there is a “gap in access to credit” in which lower credit scores are a “significant barrier” to home buying.
“Moreover, federal programs exist to address affordable housing assistance and the new policy does nothing to address the shortage of housing inventory,” the letter said.
Thompson said the new rules are designed to “increase pricing support for purchase borrowers limited by income or by wealth” and comes with “minimal” fee changes.
