Today, Congresswoman Maxine Waters (D-CA), the top Democrat on the House Financial Services Committee, delivered the following statement at a full Committee hearing entitled, “FHFA Oversight: Protecting Homeowners and Taxpayers.”

Good morning, all. I’m pleased to welcome Director Sandra L. Thompson before our Committee this morning. 

Earlier this month, the Federal Housing Finance Agency took a step in the right direction to adjust loan level price adjustments, or LLPAs, in a way that ensures lower income borrowers with great credit scores, but not enough for a 20 percent down payment particularly in today’s housing market, are not unfairly penalized compared to similar borrowers with higher income and higher wealth. Unfortunately, Republicans are continuing to spread misinformation about the new pricing framework and regurgitating “alternative facts” about what this actually means for borrowers, even after their own witness debunked their claims last week. 

Well, here are the facts, yet again. These changes will not result in higher credit score borrowers subsidizing lower credit score borrowers. As former FHFA Director Ed DeMarco, who was invited by the Republicans to a hearing last week, stated: these pricing changes “are not focused on cross-subsidization. They’re focused on making sure, across the grid, that we’re making a rate of return efficient for the capital that has to be raised.” In fact, these changes follow through on capital rules enacted by the Trump Administration.   

More importantly, as our nation’s housing and homelessness crises worsen across both rural and urban communities, FHFA’s changes will correct for unfair subsidies that have benefitted wealthier individuals purchasing lavish vacation homes and investment properties for over a decade. I’d also like to point out that Director Thompson’s updates to the pricing framework will benefit constituents everywhere, including in Chair McHenry’s district in North Carolina and Subcommittee Chair Davidson’s district in Ohio, where homebuyers will pay some of the lowest fees among all Enterprise borrowers.  

My colleagues on the other side of the aisle appear to be more concerned about protecting the wealthy even if it comes at the expense of those with less inter-generational wealth. I, for one, support FHFA’s effort to expand access to the American Dream of homeownership for every creditworthy borrower on fair terms.  

Finally, I’d like to close with this—despite supporting a debt ceiling increase 3 times under Trump, and despite President Biden making a generous offer of level funding the government next year, Republicans continue to threaten economic calamity, including chaos in the housing market that would raise mortgage rates to well over 8 percent. Their plan would also eliminate 100,000 jobs for teachers, put millions at risk of homelessness, and undermine health insurance for 21 million Americans. The fact that Republicans are up in arms about the FHFA’s modest pricing adjustments that their own Republican witness supports, while ignoring the devastating costs and harm of debt ceiling brinksmanship, shows everyone what they really care about—undermining Biden by undermining America.   

Committee and House Democrats will continue to support policies that help every family live affordably and with dignity, both through housing reforms and cleanly raising the debt ceiling. I look forward to Director Thompson setting the record straight today, and with that, I yield back. 

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