U.S. Representative Ed Royce (R-CA) released the following statement in response to President Obama’s announcement of the Federal Housing Administration’s (FHA) reduction of annual mortgage insurance premiums by 0.5 percentage points:
“The President’s decision reflects a race to the bottom between the FHA and the GSEs in which the private sector is crowded out and taxpayers are left holding the bag. The financial crisis is proof positive that an increased government presence in housing distorts the market and promotes the very boom-and-bust cycle we are trying to avoid.”
Rep. Royce is a senior member of the House Financial Services Committee and served on the Housing and Insurance Subcommittee during the 113th Congress.
Source:: U.S. Rep. Ed Royce