U.S. Sens. Mike Braun (R-IN) and Roger Marshall (R-KS) have introduced the Middle Class Borrower Protection Act to reverse the Federal Housing Finance Agency’s (FHFA) recent mortgage rule that changed to the Loan-Level Price Adjustment (LLPA), which many critics argued offers subsidies to borrowers with lower credit scores by forcing higher mortgage fees to consumers with better credit.
“The average American has a credit score over 716,” said Braun. “The Biden administration is making homeownership more difficult for everyday Americans by raising rates for most people with a credit score over 680 to subsidize riskier borrowers. I urge my colleagues in the Senate to quickly vote to overturn this unfair rule that penalizes fiscal responsibility.”
“It is ludicrous to punish fiscally responsible buyers by charging them a higher fee in order to give risky borrowers loan-level price adjustments,” added Marshall. “Our bill will reverse this misguided choice and require the FHFA to follow the established rules and administrative procedures when making changes like this. This is unfair to every American who has worked hard and managed their finances responsibly – they shouldn’t have to pay more and be penalized for the choices of others.”
The House of Representatives voted last month to overturn the new rule, with 14 Democrats joining Republicans for the measure’s 230-189 passage. However, the new Senate companion bill does not have any Democratic senators as co-sponsors, which would seem to doom the effort in that narrowly divided chamber.
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Amen…
I am a single mother who has worked very hard to keep a good credit score, sometimes giving up food choices and extras like hair appointments. Now I have to worry that I did the wrong thing by being responsible. This is so wrong on too many levels!
Thank goodness! There is also a future economic impact to this, it’s called foreclosures.
Providing a lower rate to entice buyers who have not been financially stable, paid bills on time or managed finances well in order to have good credit, is simply wrong. I can liken it to stayed income loans but worse!
Loan originators have told me the people who aren’t financially stable will never get a loan in the first place even with this nonsense. This is all for show. People with the better credit and financially responsible people are just basically being robbed by the banks.
Everything that Biden and his Democrat jass asses touch turns into a pile of crap. I feel bad for the middle income American tax payer but not the ones that vot Democrat. They deserve all of this crap. It’s very hard to get ahead for honest Americans to get ahead when the dishonest government officials keep screwing things up while taking and wasting our tax money
The whole system before this change and even after it seems so ridiculous anyway.. Lawmakers do everything to try to classify citizens into differing groups and pit people against each-other.. Logically speaking one either qualifies for a loan or they don’t.. Everything else is set up to divide people & of course make the banks more money every time in the process