McDowell Leads Over 45 House GOP Members in Letter Urging FHFA to Reverse Harmful Mandate Limiting Homeowners’ Insurance Choice
WASHINGTON, D.C. – Today, Congressman Addison McDowell (NC-06) led more than 45 of his House GOP colleagues in a letter to Federal Housing Finance Agency (FHFA) Director William Pulte urging the agency to reverse recent guidance that restricts Actual Cash Value (ACV) homeowners’ insurance policies for federally backed mortgages.
The letter draws much-needed attention that the new policy from Fannie Mae and Freddie Mac, which requires Replacement Cost Value (RCV) homeowners insurance coverage nationwide, could make homeownership unattainable for many working families, especially in rural communities, like that of North Carolina’s 6th congressional district.
“We should be making it easier for young families and professionals – especially in rural towns – to own a piece of the American Dream, not harder to buy a house,” Congressman McDowell said. “That is why I'm urging Director Pulte to seriously reevaluate the Federal Housing Finance Agency’s recent guidance that adds additional cost to homeownership through a one size fits all pocket books approach to home insurance. I’ve heard from folks in North Carolina’s Sixth district, and they are very clear, achieving homeownership is hard enough, new homeowners need more options to lower costs, not less.”
The Members’ letter argues that FHFA’s one-size-fits-all approach ignores the realities of diverse housing markets across the nation, especially in rural areas. Many new home owners in rural areas are looking to buy houses with modest market values, older construction, and appraisals that fall below replacement cost, making RCV coverage price options hindering the ability to afford the American dream of owning a home.
The letter to the Federal Housing Finance Agency was signed by over 45 members of Congress and applauded by the National Association of Mutual Insurance Companies, the Independent Insurance Agents & Brokers of America (the Big “I”), and American Property Casualty Insurance Association (APCIA).
“Fannie and Freddie are needlessly putting the dream of home ownership further out of reach for many Americans through a Biden-era mandate limiting consumer choice when it comes to insurance coverage. Amid rising prices and a shortage of housing stock, homebuyers should be able to choose the coverage that meets their needs and their budget. We thank Congressman McDowell for bringing light to this harmful government overreach, and hope he, his colleagues and the administration will work to swiftly undo this unjustified mandate,” said Jimi Grande, NAMIC’s, Senior Vice President of Federal & Political Affairs
“Main Street independent insurance agents take pride in protecting consumers and offering them a variety of choices when it comes to insuring their property. We applaud Representative McDowell for taking this same mentality to serve North Carolinians and consumers nationwide, ensuring they have freedom to choose their coverage. Home ownership is the American Dream, and federal regulations should not stand in the way of realizing that dream by limiting choice and unnecessarily inflating the cost of insurance,” said Nathan Riedel, SVP, Federal Government Affairs, Independent Insurance Agents & Brokers of America (the Big “I”)
“Homeowners deserve access to insurance options that reflect the true value of their property and are mindful of their financial stability. APCIA thanks Congressman McDowell and his colleagues for urging Director Pulte and the Federal Housing Finance Agency to ensure that ACV policies remain available to families across the country, especially in rural and economically challenged communities,” said Sam Whitfield, Senior Vice President, American Property Casualty Insurance Association
The list of co-signers includes:
Brad Knott (NC-13), Pat Harrigan (NC-10), Chuck Edwards (NC-11), David Rouzer (NC-7), Mark Harris (NC-8), Mike Rogers (AL-3), Robert Aderholt (AL-4), Dale Strong (AL-5), Jeff Hurd (CO-3), Gabe Evans (CO-8), Jimmy Patronis (FL-1), Laurel Lee (FL-15), Aaron Bean (FL-4), Anna Paulina Luna (FL-13), Rick Allen (GA-12), Brian Jack (GA-3), Richard McCormick (GA-7), Ashley Hinson (IA-2), Mariannette Miller-Meeks (IA-1), Sam Graves (MO-6), Mark Alford (MO-4), Mike Ezell (MS-4), Ryan Zinke (MT-1), Troy Downing (MT-2), Kevin Hern (OK-1), Stephanie Bice (OK-5), Frank Lucas (OK-3), Charles Fleischmann (TN-3), Tim Burchett (TN-2), Andrew Ogles (TN-5), John Rose (TN-6), Nathaniel Moran (TX-1), Chip Roy (TX-21), Morgan Luttrell (TX-8), Michael McCaul (TX-10), August Pfluger (TX-11), Craig Goldman (TX-12), Troy Nehls (TX-22), Tony Gonzales (TX-23), Michael Cloud (TX-27), John Carter (TX-31), Pat Fallon (TX-4), Jake Ellzey (TX-6), H. Morgan Griffith (VA-9), John McGuire (VA-5), Ben Cline (VA-6), Glenn Grothman (WI-6), Eric Crawford (AR-1).
Read the full copy of the letter here.
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