Biden’s ‘Socialist’ Mortgage Act Under Fire: GOP Strikes Back!

The House of Representatives, with the Republican party leading, endorsed a bill on Friday that would counteract a highly disputed mortgage rule implemented by President Biden.

This new bill, known as the “Middle-Class Borrower Protection Act,” won the favor of the House, gaining a majority with 230 votes to 189. An interesting fact is that, along with all Republicans, 14 Democrats also supported the bill.

What does this act aim to do? It plans to discard recent shifts by the Federal Housing Finance Agency regarding how Fannie Mae and Freddie Mac calculate the cost for promising to back up single-family mortgages.

This new act was brought to light following a major uproar from Republicans and housing gurus who criticized the new changes as “socialist.”

Tom Emmer, a Republican from Minnesota, who was one of the bill’s main supporters, praised its acceptance, sharing with FOX Business, “The Biden administration’s plan to reallocate credit scores is an example of extreme socialism. Today, House Republicans stood up for hard-working Americans by voting to remove this unjust rule. This will ensure those who have built good credit aren’t burdened with supporting high-risk borrowers.”

Representative Warren Davidson, a Republican from Ohio, was the original introducer of the bill. He criticized the Federal Housing Finance Agency’s plan, stating that it was unfair to responsible credit holders, arguing that even wealthy people can mismanage their credit.

Davidson’s view was reiterated by Emmer, who raised concerns about the potential negative impact on middle-class Americans and doubted the true intentions of the Biden administration. He wondered whether the president fully understood the implications of the new rule or if he was masking the fact that it could potentially harm the middle class.

Contrary to these views, House Minority Leader Hakeem Jeffries, a Democrat from New York, defended the rule, claiming that it benefited the middle class. He said that President Biden and the Democrats in the House and Senate are fighting for the middle class and the American dream, including home ownership’s affordability.

It is uncertain what fate awaits this bill in the Senate. However, whispers in the corridors suggest that some moderate Democrats might side with the Republicans to pass the legislation, which President Biden could then veto.

Emmer insisted that it’s an easy choice for lawmakers to vote for the bill, saying that according to a survey in his district, most constituents oppose President Biden’s new rule.

Emmer also criticized the current Democratic party’s economic ideology, noting a trend towards socialism and, in some cases, Marxism. He concluded that the typical American, who works hard and plays by the rules, should have the opportunity to achieve the American dream without being penalized.