U.S. Senate Banking Committee Ranking Member Pat Toomey (R-Pa.) released the following statement after the U.S. Department of the Treasury and the Federal Housing Finance Agency (FHFA) suspended Preferred Stock Purchase Agreements (PSPAs) restrictions.
“Housing is cyclical, and so are failed liberal housing policies.
“In the 2000s, flawed federal policy steered many borrowers, especially low and middle-income borrowers, into purchasing homes they could not afford. When the bubble burst, those homebuyers, many of whom were minorities and first-time homeowners, suffered severe losses in generational wealth.
“Fifteen years later, the Biden administration is repeating the very same mistakes. Relaxing restrictions on risky mortgages when housing supply is near a record low risks overheating an already-hot market. Unfortunately, we know how this ends: wiped-out homeowners, and another wave of taxpayer bailouts.”