Kansas State Treasurer Steven Johnson urges the Biden administration to reverse course on new federal housing policies.

 In a letter sent to President Biden and Sandra Thompson, director of the Federal Housing Finance Agency, Johnson, along with financial officers from 26 other states, asked for the policies, which went into effect yesterday, to be repealed, saying they will add fees to the mortgages of buyers with high credit scores and down payments to subsidize less-qualified borrowers.

 The State of Kansas encourages home ownership through a tax-advantaged first-time home buyer savings account. This program allows Kansans to save up to $3,000, or $6,000 for a married couple, per year to a designated first-time home buyer account. Contributions to the account are eligible for a deduction from state income taxes, and the interest earned by the accounts is also exempt from state income taxes.

 Johnson says the goal is to increase home ownership across the country, because home ownership is a central component of the American Dream. He also says low credit scores are a significant barrier to buying a home. He says the new policy does nothing to address the shortage of housing inventory.

 A copy of the letter is available here.