Lauren Boebert Slams Biden's Plan to Penalize Homebuyers With Good Credit

Lauren Boebert has hit out at proposals by a federal agency, which she said would "actively incentivize people to have lower credit scores."

The House Republican was responding to a plan announced by the Federal Housing Finance Agency (FHFA) on April 19. This seeks to "increase pricing support for purchase borrowers limited by income or by wealth."

Under the new rules, due to take effect on May 1, some borrowers with good credit ratings will be required to pay more for their mortgages, while those with lower credit ratings will receive "more targeted support", the FHFA said, to get on the housing ladder.

The objective of the changes is "to maintain support for purchase borrowers limited by income or wealth," FHFA director Sandra L. Thomson said in a statement this week. There has been concern regarding racial disparities in credit scores. The average white American had a rating of 727 in 2021, versus 667 for Hispanics and 627 for those who are Black, according to the FinMasters finance blog.

Borrowers with a credit rating of 680 or higher can expect to pay another $40 per month, if they have taken out a $400,000 mortgage, according to the U.K. newspaper Daily Mail. Under the FHFA plan, the proportionally biggest increases will be for homeowners who made large downpayments.

The change is expected to affect most mortgage holders, as housing finance giants Fannie Mae and Freddie Mac are both regulated by the FHFA.

On Wednesday, Boebert wrote on Twitter: "The government shouldn't actively incentivize people to have lower credit scores. It's like they're trying to crash the economy on purpose."

Newsweek has contacted the FHFA for comment by email. Earlier this month, the agency sent Newsweek a statement saying that the changes are "minimal." It added that these are aimed at ensuring "government-sponsored enterprises," such as Fannie Mae and Freddie Mac, "fulfil their role in any market condition."

The plan was also condemned by Boebert's fellow House Republican Mike Lawler, who represents New York's 17th congressional district. He told Newsweek: "This new rule unfairly penalizes Americans for having good credit and rewards those who accrue debt and don't pay their bills with cheaper loans.

"The way to expand access to housing isn't to reward bad credit—it's to bring down inflation, reduce property taxes, cut energy costs and invest in critical infrastructure," Lawler added.

Earlier this month, Boebert created a post on Earth Day, which takes place every April 22, to write that "liberals" are using "climate change to divide us."

The Republican tweeted: "On this Earth Day, let's always remember to appreciate this incredible world God has given us. Liberals will try to make this day about climate change to divide us. Let's focus on being appreciative, good stewards of what God has given us instead."

Also in April, Boebert was attacked online after using a picture of fallen U.S. soldier Pat Tillman to criticize Bud Light over its relationship with transgender influencer Dylan Mulvaney.

However, Boebert has great influence in the new Republican-led Congress. In January, she was appointed to the powerful House Oversight Committee. This panel ensures the efficiency, effectiveness, and accountability of the federal government and all its agencies.