Press Releases
The Leader’s Floor Lookout: Friday, June 23, 2023
Washington,
June 23, 2023
Here’s what to watch for on the House Floor today:
Blocking FHFA’s Unfair Housing Rule Penalizing Reliable Borrowers
In January of this year, the Federal Housing Finance Agency (FHFA) announced changes to the pricing grid for single family loans, resulting in an increase in fees for many borrowers with higher credit and a decrease in fees for many borrowers with lower credit. Under the new federal housing rule, buyers with a credit score over 680 pay about $40 more each month on a $400,000 loan. Buyers who make down payments of 20 percent on their home will see some of the highest fee increases, while most riskier borrowers actually see a reduction in fees. Essentially, this forces reliable borrowers with good credit to subsidize riskier loans for less reliable borrowers with low credit.  Why should we penalize borrowers who have worked hard to pay their bills and establish good credit? It is unfair to punish borrowers for maintaining good credit and reward borrowers who haven’t. The FHFA should be using risk-based principles in setting fees.
We must have more transparency to Congress and to the American public when it comes to the federal regulators’ decision making process for fee setting.  Rep. Warren Davidson’s legislation, H.R. 3564, the Middle Class Borrower Protection Act of 2023, cancels the Federal Housing Finance Agency’s changes to single-family mortgage pricing framework that makes reliable borrowers with good credit subsidize riskier loans, and makes sure such changes cannot be done in the future. House Republicans are standing up for the families who have worked hard to establish good credit and fighting against this irrational rule that ultimately puts taxpayers at risk.  |