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.”

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s