Romney and Lee Criticize Mortgage-Pricing Change That Raises Costs for Some Buyers

Senators Mitt Romney and Michael Lee criticized a new mortgage-pricing policy that went into effect May 1, saying it will raise costs for some homebuyers with strong credit while lowering costs for others with smaller down payments or lower credit scores.

The change, described in a short public exchange, applies to borrowers using conventional mortgages. According to the recording, buyers with smaller down payments and lower credit scores can now qualify for lower costs, while buyers with higher credit scores and larger down payments will see costs increase. The recording did not provide dollar figures or concrete examples of how monthly payments would change.

Romney, in a statement to the Deseret News reported in the exchange, said the new rules "make 'no sense.'" The recording also states that Senator Michael Lee opposes the policy. The exchange does not identify the legislative body or venue where the remarks were made and does not record any formal action or vote on the matter.

Speakers in the recording said they would watch for any subsequent changes to the policy. No additional details about the administrative source of the pricing change, its implementing agency, or the magnitude of its impact were specified in the recorded remarks.