We have received text from H.R. 53: Responsible Borrower Protection Act of 2025. This bill was received on 2025-01-03, and currently has 7 cosponsors.
Here is a short summary of the bill:
The Responsible Borrower Protection Act of 2025 aims to prevent certain changes in credit fees associated with single-family housing mortgages. The bill specifically targets changes that were announced by the Federal Housing Finance Agency (FHFA) on January 19, 2023. These changes were related to the pricing framework for credit fees charged by Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation).
Key Provisions of the Bill
Cancellation of Proposed Changes:
The FHFA and the two enterprises (Fannie Mae and Freddie Mac) are instructed not to implement the modifications to the mortgage credit fee pricing framework as announced in early 2023. This includes any specifics outlined in official communications from these agencies.
Risk-based Pricing Continuation:
While the bill prohibits the implementation of the proposed changes, it does allow the enterprises to continue applying risk-based pricing for credit fees for single-family housing mortgages. This means that the pricing of credit fees can still vary based on the borrower's risk profile.
In essence, the legislation is designed to maintain the existing structure of credit fees associated with mortgages backed by Fannie Mae and Freddie Mac, while allowing for risk-based pricing to remain in place. The intent behind this bill could be to protect borrowers from potentially higher fees that would have resulted from the proposed changes previously announced by the FHFA.
Relevant Companies
FNMA
(Federal National Mortgage Association - Fannie Mae): May be directly impacted by the bill as it seeks to cancel proposed changes to credit fees that would affect their mortgage pricing structure.
FMCC
(Federal Home Loan Mortgage Corporation - Freddie Mac): Similarly impacted, since the bill aims to stop changes to credit fees in their mortgage pricing framework as well.
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