BARR APPLAUDS PRESIDENT TRUMP AND FHFA DIRECTOR BILL PULTE FOR ENDING BIDEN-ERA REGULATIONS TO HELP RURAL HOMEOWNERS

The following information was released by the office of Kentucky Rep. Andy Barr:

U.S. Congressman Andy Barr (R-KY) applauded President Donald Trump and Federal Housing Finance Agency (FHFA) Director Bill Pulte for taking action to restore consumer choice in homeowners insurance policiesan important step that will provide better access and affordability for homeowners, particularly in rural communities.

The move addresses a Biden-era policy that required federally backed mortgages to carry full replacement cost value (RCV) insurance, effectively banning actual cash value (ACV) policies for roofs that many homeowners rely on to keep premiums affordable. Reform of ACV for roofs has been a priority of the Kentucky Farm Bureau.

President Trump and Director Bill Pulte are delivering real relief for homeowners, especially in rural communities where families are already dealing with rising housing and insurance costs, said Congressman Barr. The Biden-era mandate forced homeowners into more expensive replacement cost policies instead of more affordable options that made sense. Restoring the ability to use actual cash value coverage for roofs will help keep insurance premiums manageable and protect access to homeownership.

Kentucky Farm Bureau applauds the Administration and FHFA Director Pulte for addressing this important issue that impacts Kentucky homeowners and future home buyers. We appreciate Congressman Barrs tireless efforts to advocate for one of KFBs key priorities. Allowing for the use of ACV on roofs in Kentucky will allow for more consumer choice in addressing their insurance needs, the Kentucky Farm Bureau said in a statement.

Barr has been a leading advocate for fixing the policy. Last year, Barr sent a letter with House Financial Services Housing and Insurance Subcommittee Chairman Mike Flood to FHFA leadership raising concerns that the mandate would restrict consumer choice and impose unnecessary costs on homeowners.

We write to express serious concerns about the Government-Sponsored Enterprises (GSEs) prohibiting the acceptance of actual cash value (ACV) homeowners insurance policies for federally backed mortgages, something highlighted in guidance issued in February 2024, Barr wrote last year in his letter to Director Pulte. Mandating RCV policies not only restricts consumer choice but also imposes significant cost burdens on families already facing steep affordability challenges in the housing market.

Barr also noted that insurance policiesincluding those with ACV componentsare already regulated and approved by state insurance departments, ensuring homeowners have access to quality coverage options.