Today, Congressman Blaine Luetkemeyer (MO-3) questioned U.S. Department of Housing and Urban Development (HUD) Secretary Marcia Fudge on the present housing crisis in the United States and the Biden administration’s failure to slow or reverse the trend.

Rep. Luetkemeyer: “Secretary Fudge, are you aware of the FHFA’s decision to allow lenders to move from a tri-merge credit report to two credit reports for mortgages backed by Fannie and Freddie?”

Sec. Fudge: “I mean I know that it happened, but I don’t know the background or anything.”

Rep. Luetkemeyer: “Instead of having a requirement for three credit reports, the requirement now is for at least two reports. So, the concern is, there is analysis out there that shows this could actually result in higher costs for borrowers, increased risk for lenders, and the outright exclusion of eligible borrowers from mortgage markets…Are you concerned about this at all?”

Sec. Fudge: “I would say our risk people have not raised any red flags. I don’t know specifically what FHFA has done— I know generally what they have done. I’d have to take more time to look at it, but that’s— even though we work together do not affect us in any way.”

Rep. Luetkemeyer: “Do you work with them very closely? Do you advise them at all?”

Sec. Fudge: “I do not. I sit on the board that meets with them to get reports from them regularly.”

Watch the full exchange HERE.

Background: In November 2023, Rep. Luetkemeyer sent a letter to Federal Housing Finance Agency (FHFA) Director Sandra Thompson expressing his disapproval of her actions regarding changes to credit-reporting requirements. Tri-merge reports provide the clearest and most comprehensive picture of a consumer’s credit history. Moving to a bi-merge requirement could saddle consumers with unmanageable debt and likely lead to millions of foreclosures, devasting the economy and worsening the housing crisis.