Biden may defy bipartisan vote on mortgage overhaul.

President Biden’s Veto Power May Be Needed to Tackle Mortgage Rates

President Joe Biden may once again have to use his veto pen to counter the desires of Congress, this time regarding mortgage rates. The Middle Class Borrower Protection Act was passed by the House of Representatives last Friday, with a surprising 14 Democrats joining all Republicans in a 230-189 vote to eliminate new rules that adjust mortgage rates.

In essence, these adjustments increase rates for borrowers with credit scores of 680 or higher, while lowering them for those with lower credit scores and smaller down payments. House Republicans, who voted to scrap the rule, argue that it is an example of equity and socialism gone awry.

“President Biden’s recent mortgage rule is insane!” exclaimed Rep. Debbie Lesko (R-AZ) on Twitter. “This upside-down policy incentivizes people not to be financially responsible. Those with good credit scores should never be forced to subsidize those with bad credit scores.”

However, President Biden made his opposition clear by issuing a statement of administration policy that firmly opposes the bill. The statement, released on the same day as the House vote, highlights how the bill would hinder the Federal Housing Finance Agency’s ability to respond to changing housing market conditions and ensure the safety and soundness of government-sponsored enterprises.

The bill now faces a tougher battle in the Senate, where Democrats hold a narrow majority. Nevertheless, it still has a chance of passing. Earlier this month, the Senate voted to repeal Biden’s student loans plan, with several Democrats joining Republicans to pass the measure, forcing Biden to use his veto power once again.

This situation not only poses challenges for President Biden but also creates headaches for House Democrats who must take a stance on controversial policies. Among the 14 Democrats who voted against Biden’s mortgage overhaul are Reps. Henry Cuellar (D-TX) and Abigail Spanberger (D-VA), both of whom hold influential positions.

The White House denies that its mortgage rate overhaul will penalize borrowers with high credit scores, emphasizing that the adjustment aims to increase housing affordability, particularly in the face of rising average mortgage rates. FHFA officials also note that individuals with exceptionally high credit scores of 780 and above will mostly see their fees decrease compared to the previous scale.

As President Biden seeks to embrace his economic record, the term “Bidenomics” has been aggressively promoted by his administration. However, Republicans are ready for a fight, pointing to Biden’s low economic approval ratings. Regardless of the outcome of the rate overhaul, mortgage rates could become a vulnerable area.

Key Points:

• The Middle Class Borrower Protection Act, which adjusts mortgage rates, was passed by the House of Representatives.
• President Biden opposes the bill and may use his veto power to counter it.
• The bill faces challenges in the Senate but still has a chance of passing.
• House Democrats are divided on the issue, with some crossing party lines to vote against the mortgage overhaul.
• The White House denies that the rate adjustment will harm borrowers with high credit scores.
• Mortgage rates have been rising, adding to the vulnerability of the housing market.

For more information, click here to read the full article from The Washington Examiner.

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