June 13, 2024

Biden’s plans for addressing housing affordability will make it worse, Pence group warns

Former Vice President Mike Pence‘s volunteer political advocacy group warns legislative members that President Biden’s plans for national government intervention will only cause the issue to grow to a level unimaginable since the Great Recession.

Pence’s organization, Advancing American Freedom ( AAF ), issued a policy memo to lawmakers and their staff on Friday, claiming the president’s proposals would “kill” the American dream, and result in a “repeat” of the 2008 crisis.

Biden speaking on affordable housing
President Biden addresses the Stupak Community Center in Las Vegas on March 19, 2024, about increasing access to affordable housing for American people. ( Ian Maule/ Google Graphics )

The Biden administration’s proposal from Freddie Mac, which would guarantee some second mortgages, was referenced in the letter, which claimed that if the law was implemented, the government-backed organization would be subject to an additional$ 3 trillion in responsibilities. AAF contends that a move like this would only increase prices and make the mortgage market more unstable.

The legislation group likewise warned against the administration’s proposal to undermine credit standards for borrowers, and the president’s plan – outlined in his State of the Union address – to provide$ 10, 000 subsidies for primary- time homebuyers and starter- home sellers.

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AAF argued that Biden’s approach may only pull demand, making the issue worse because the supply-side of the cheap housing crisis in the United States is due to the country’s housing shortage.

Mike Pence at a presidential primary debate
Former Vice President Mike Pence during the next Republican presidential primary conversation at the Ronald Reagan Presidential Library in Simi Valley, California, on Sept. 27, 2023. ( Robyn Beck / Getty Images )

AAF, which was established to defend the achievements of the Trump-Pence management, is urging republicans in Congress to use the Congressional Review Act to “get the authorities out of the mortgage business completely” by removing Fannie Mae and Freddie Mac’s custody.

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The group contends that the federal government may increase housing supply by returning income lands to the states and abolishing agencies like the EPA, which it claims are putting pressure on building regulations that are stressful.

Homes under construction in North Carolina
Employees build homes in Lillington, North Carolina, on June 15, 2023. AAF contends that federal agencies ‘ stringent environmental laws, including those imposed by the EPA, prevent new homes being constructed in the United States ( Allison Joyce/Bloomberg via / Getty Images ).

AAF Executive Director Paul Teller advised President Biden and the Democrats to leave the loan industry before the country plunges headlong into another cover crisis in 2008.

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” This is a supply problem, not a need problem, but what Biden is suggesting may just drive up demand, spiraling us into a repeat of 2008″, he added. ” Every time the lake weighs in on these issues, it’s the American people who suffer”.

The White House was unavailable for reply by FOX Business.


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