Congressman Addison McDowell of North Carolina’s 6th District has led a group of more than 45 House Republican members in urging the Federal Housing Finance Agency (FHFA) to reverse recent guidance on homeowners’ insurance policies for federally backed mortgages. The letter, addressed to FHFA Director William Pulte, raises concerns about new requirements from Fannie Mae and Freddie Mac that mandate Replacement Cost Value (RCV) insurance coverage nationwide.
The lawmakers argue that this policy could make homeownership less attainable for working families, particularly in rural areas such as those found in North Carolina’s 6th congressional district. According to Congressman McDowell, “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. 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 letter highlights that the FHFA’s approach does not account for differences across housing markets. Many prospective homeowners in rural regions seek properties with modest market values or older construction—situations where RCV coverage may increase costs and limit affordability.
Support for reversing the mandate comes from several industry groups. Jimi Grande, Senior Vice President of Federal & Political Affairs at the National Association of Mutual Insurance Companies (NAMIC), stated: “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.”
Nathan Riedel, Senior Vice President of Federal Government Affairs at Independent Insurance Agents & Brokers of America (the Big “I”), said: “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.”
Sam Whitfield, Senior Vice President at American Property Casualty Insurance Association (APCIA), added: “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.”
Among those signing onto McDowell’s letter were representatives from several states including Alabama, Colorado, Florida, Georgia, Iowa, Missouri, Mississippi, Montana, Oklahoma, Tennessee, Texas, Virginia Arkansas as well as other districts within North Carolina.
