To cancel certain proposed changes to loan level price adjustments by the Federal National Mortgage Association and credit fees charged by the Federal Home Loan Mortgage Corporation.
Impact
If enacted, HB 2876 would effectively nullify the Federal Housing Finance Agency's plans to implement these pricing changes which had been scheduled for execution. The proposed amendments, as outlined in the agency's announcements and accompanying letters, would no longer be valid, thereby preserving the existing pricing structure for loans backed by Fannie Mae and Freddie Mac. This decision is seen as a move to uphold the affordability of housing and protect consumers from what some perceive as unnecessary charges during a precarious economic juncture.
Summary
House Bill 2876 seeks to cancel proposed modifications to loan level price adjustments that were set to be imposed by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). Introduced on April 26, 2023, the bill addresses specific changes that had been previously announced by the Federal Housing Finance Agency, which aimed to update the pricing framework for single-family mortgages. The sponsors of the bill argue that the changes would negatively impact both lenders and borrowers in the housing market, particularly in a time of increasing interest rates and affordability challenges.
Contention
The bill's introduction has sparked debate among various stakeholders within the housing sector. Supporters commend the bill for protecting homebuyers from increased costs, while detractors—particularly those aligned with the Federal Housing Finance Agency—express concerns that blocking these changes may not align with long-term market stability goals. Critics argue that the intended adjustments could have created a more equitable lending environment by addressing risk-based pricing, thereby potentially benefiting future homebuyers and enhancing overall market efficiency.
This bill prohibits the Federal Housing Finance Agency, the Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (Freddie Mac) from implementing changes to the single-family home loan pricing framework for upfront fees on certain home loans, announced in January 2023. The changes revise the fee charts that provide percentage adjustments based on a borrower's credit score and other risk factors. Overall, these changes increase the percentage adjustments, with variations based on the particular risk profile of the loan.
Responsible Borrower Protection Act of 2025This bill prohibits the Federal Housing Finance Agency, the Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (Freddie Mac) from implementing changes to the single-family home loan pricing framework for upfront fees on certain home loans, announced in January 2023. The changes revise the fee charts that provide percentage adjustments based on a borrower's credit score and other risk factors. Overall, these changes increase the percentage adjustments, with variations based on the particular risk profile of the loan.
Providing for consideration of the bill (H.R. 3564) to cancel recent changes made by the Federal Housing Finance Agency to the up-front loan level pricing adjustments charged by Fannie Mae and Freddie Mac for guarantee of single-family mortgages, and for other purposes; providing for consideration of the bill (H.R. 3799) to amend the Internal Revenue Code of 1986 to provide for health reimbursement arrangements integrated with individual health insurance coverage; and providing for consideration of the resolution (H. Res. 461) condemning the use of elementary and secondary school facilities to provide shelter for aliens who are not admitted to the United States.
Article I Regulatory Budget Act This bill requires the establishment of a federal regulatory budget to limit the costs of federal regulations. It also establishes requirements for disclosing the projected costs of federal regulations and procedures for enforcing the regulatory budget.
Budget Process Enhancement Act This bill modifies the federal budget process to withhold the salaries of Members of Congress and cancel the salaries of certain employees of the Office of Management and Budget when certain budget process requirements are not met. The bill also changes the assumptions that the Congressional Budget Office uses to calculate its baseline for discretionary spending to eliminate certain adjustments for inflation and other factors. (A baseline is a projection of federal spending and receipts during a fiscal year under current law.)