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House Co-Sponsorship Memoranda
House of Representatives
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | May 10, 2023 03:04 PM |
|---|---|
| From: | Representative Seth M. Grove |
| To: | All House members |
| Subject: | Resolution urging Biden Administration and FHFA to rescind policy that punishes financially responsible borrowers |
| In the near future, I plan on introducing a resolution urging the Biden Administration and the Federal Housing Finance Agency (FHFA) to rescind the administration’s proposed updates to the upfront fees and matrices for the purchases, rate-term refinancing and cash-out refinancing of mortgage loans. On January 19, 2023, the FHFA Director stated that, “By locking in the upfront fee eliminations announced last October, FHFA is taking another step to ensure that the Enterprises (Fannie Mae Lender and Freddie Mac) assurance their mission of facilitating equitable and sustainable access to homeownership.” The FHFA press release goes on to say that the updates “…include developing a pricing framework to maintain support for single-family purchase borrowers limited by wealth or income, while ensuring a level playing field.” The Biden Administration and FHFA updates punish financially responsible borrowers by imposing higher fees on borrowers with healthier credit scores to subsidize at risk homebuyers with lower credit scores. Over subsidizing the demand for housing, under the policy guise of affordable housing, is not going to help homeownership if supply doesn’t expand along with it. Failed federal housing intervention policies not presenting the results sought has resulted in the Biden Administration and FHFA now attempting to “adjust course” by punishing financially responsible borrowers by imposing higher fees on borrowers with healthier credit scores to subsidize at risk homebuyers with lower credit scores. Please join me in cosponsoring this important resolution |
Introduced as HR129