Should HB2960 be enacted, it would directly influence the way mortgage credit fees are structured and administered by federally backed mortgage entities. The bill seeks to maintain the existing risk-based pricing model while eliminating new fee structures introduced by the FHFA. This action is viewed as a measure to stabilize the housing finance market and minimize the financial burden on home buyers, particularly those purchasing single-family homes.
Summary
House Bill 2960, known as the Fairness in Borrowing Act of 2023, is proposed legislation aimed at addressing specific changes to credit fees charged by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. The bill seeks to cancel the amendments to the single-family housing mortgage credit fee pricing framework that were announced previously by the Federal Housing Finance Agency (FHFA) on January 19, 2023. By reversing these changes, the bill aims to protect borrowers from potential increases in fees associated with mortgage lending, thereby ensuring fairness in borrowing practices.
Contention
Notable points of contention surrounding HB2960 include the debate on the appropriateness of regulatory intervention in credit pricing. Proponents argue that the bill serves to safeguard the interests of average borrowers who might be adversely affected by increased fees, while critics may contend that the legislation could limit necessary reforms aimed at improving the overall stability and efficiency of the mortgage funding system. Additionally, the implications of this bill on the risk management frameworks employed by the FHFA and mortgage enterprises could be a significant aspect of future discussions.
Related
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.
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.
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.
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.