This bill cancels proposed changes to loan level price adjustments by the Federal National Mortgage Association and credit fees charged by the Federal Home Loan Mortgage Corporation, preventing their implementation.
Stephanie Bice
Representative
OK-5
This bill prohibits the Federal Housing Finance Agency from implementing changes to single-family pricing framework announced on January 19, 2023. This includes updates from the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. The bill ensures that the announced changes, Lender Letter LL202301, and Bulletin 2023-1 will not be enforced.
Fannie Mae and Freddie Mac Pricing Changes Blocked by New Bill
This bill puts the brakes on the Federal Housing Finance Agency (FHFA) from implementing some recently announced changes to how Fannie Mae and Freddie Mac price single-family mortgages. Specifically, it cancels updates announced on January 19, 2023, including "FHFA Announces Updates to the Enterprises Single-Family Pricing Framework," Fannie Mae's Lender Letter LL202301, and Freddie Mac's Bulletin 20231. These are now officially unenforceable.
Pricing Gridlock
The bill, in a nutshell, stops the FHFA from changing the "loan level price adjustments" (LLPAs) – basically, the fees charged to lenders, which are usually passed down to borrowers. These fees vary based on factors like credit score and down payment. The FHFA had planned to tweak this pricing grid, but this bill says, "Not so fast."
Real-World Ripple Effects
So, what does this mean for regular folks? It depends on what those blocked changes were. If the FHFA's plan was going to increase costs for certain borrowers, then this bill could save them some money. For example, imagine a first-time homebuyer with a decent, but not perfect, credit score. If the changes were going to hike their fees, this bill prevents that. On the flip side, if the changes were meant to lower costs or address some risk in the system, then blocking them could have the opposite effect. It is like hitting the pause button on a movie – you stop what's happening, good or bad.
Challenges on the Horizon
One potential snag is that blocking these changes could tie the FHFA's hands. If the changes were intended to make the mortgage system safer or fairer, this bill could delay or prevent those improvements. It's like telling your mechanic they can't install a new safety feature on your car.
The Big Picture
This move also raises a bigger question about how much Congress should ഇടപെടുക in the FHFA's day-to-day decisions. The FHFA is supposed to be the expert on housing finance, and this bill sets a precedent for more direct Congressional control. It is a bit like having your neighbor, who's not a chef, tell you how to run your restaurant.