Last week, US House of Representatives The “Middle Class Borrower Protection Act of 2023” passed legislation sponsored by Representative Warren Davidson (R-Ohio), designed to repeal controversial changes to loan-level pricing adjustments (LLPAs). LLPA changes were announced earlier this year federal housing finance agency (FHFA).
Thank you for reading this post, don't forget to subscribe!Measures – which recently received support national association of mortgage brokers (NAMB) – Passed by a vote of 230-189, with the House Republican Conference voting unanimously in its favor. Fourteen Democrats crossed party lines to join the Republicans, according to the Office of the Clerk of the US House.
Patrick McHenry (RNC), chairman of the House Financial Services Committee, said in a statement, “The Biden administration wants to put its finger on the scale and use mortgage fees to decide who pays more and who pay less.” “This will make housing less affordable, not more, and put taxpayers at risk, jeopardizing the safety and soundness of our housing finance system.”
Nearly 95% of Americans have credit scores above 680, according to McHenry, and the group could face an additional $1.8 billion in new fees over the next two years under the LLPA plan.
“House Republicans are taking action to protect middle-class borrowers with Representative Davidson’s bill, and I am proud to support it in the House,” McHenry said.
“The hostage rule of the Biden administration is socialist redistribution of wealth. Davidson said, “I’m glad to see my colleagues recognize this issue and pass their own legislation to reverse this rule.”
There was an uproar when the proposed LLPA changes were announced earlier this year. The main issue arose from the notion that the changes would penalize borrowers with good credit, which FHFA director Sandra Thompson later described as a misconception.
The changes were eventually rescinded, but not before House Republican lawmakers took aim at a House Financial Services subcommittee hearing and an additional hearing with Thompson as a witness.
Thompson said during the hearing, “I want to be very clear on one key point, and one that bears repeating: Under the new pricing framework, borrowers with stronger credit profiles are not penalized to benefit borrowers with weaker credit profiles.” being done.” “That’s not true at all.”
According to the entry given on the website of the US Congress, the bill has not been introduced yet. US Senate, It is unclear whether the bill will reach the floor of the House, where the legislative agenda is controlled by a Democratic majority.
