Fitzgerald, House Republicans Pass Middle Class Borrower Protection Act
WASHINGTON, DC – Today, House Republicans passed H.R. 3564, the Middle Class Borrower Protection Act, legislation to cancel recent changes made by the Federal Housing Finance Agency (FHFA) to increase fees on mortgages for borrowers with high credit scores to subsidize those with lower credit scores.
Background
In January of 2023, FHFA announced a set of mandated changes to the Loan Level Pricing Adjustment pricing grid affecting the vast majority of single-family purchase and rate-term refinance loans backed by government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. These changes altered the structure of the LLPAs, which are one-time upfront fees charged to lenders when the GSEs purchase their loans.
LLPAs get passed on from lenders to borrowers in the form of higher interest rates. FHFA’s changes both increased fees for many higher credit quality borrowers (half of all borrowers with FICO scores over 680) while decreased fees for 90 percent of lower credit quality borrowers (those under 680 FICO) regardless of how much of a down payment they made.
NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. While it is believed to be reliable, Urban Milwaukee does not guarantee its accuracy or completeness.
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