On Thursday, Congressman Andy Biggs (R-AZ) introduced the Responsible Borrowers Protection Act. This legislation would block the Federal Housing Finance Agency (FHFA)’s increased Loan-Level Price Adjustment (LLPA) fees on mortgage borrowers with higher credit scores announced on January 19, 2023. The new FHFA fees will subsidize mortgage borrowers with lower credit scores beginning on May 1, 2023.
“The FHFA—led by a President Biden appointed director—is punishing financially responsible mortgage borrowers. Their agenda of equity over equality defies common sense and will endanger the stability of the housing market. I hear regularly from constituents about the high cost of housing, which has been exacerbated by the insane interest rates imposed to combat Biden’s skyrocketing inflation. If implemented, the latest FHFA fee change could result in thousands of dollars in additional fees for lower-risk homeowners over time, while encouraging and rewarding financial irresponsibility. My legislation prohibits the new fees from going into effect and I’m grateful for the support of more than 30 of my House Republican colleagues,” said Congressman Biggs.
“The Biden administration’s latest effort to enforce equity in the housing market is offensive and unAmerican. Borrower’s with excellent credit should not be punished for doing right and be forced to bear more financial burdens due to the fiscal irresponsibility of others. Unelected bureaucrats in Washington should not have the ability to impose such regulations on hardworking American families, and this Administration must be held accountable for their authoritarian actions,” said Adam Brandon, President, FreedomWorks.
“While inflation and the national debt steal money from the pockets of Americans, President Biden wants to add fuel to this fire by attempting to force Americans with low-risk credit scores to subsidize lower rates for high-risk borrowers. This is a gross overreach and will ultimately contribute to the growing inflation problem we have in this country. We commend Rep. Andy Biggs on bringing forth a solution that would tackle this misguided attempt to punish Americans who have made responsible financial decisions,” said Ryan Walker, Vice President of Government Relations, Heritage Action.
Cosponsors of the legislation include: Rep. Paul Gosar DDS (R-AZ), Rep. Randy Weber (R-TX), Rep. Lauren Boebert (R-CO), Rep. Scott Perry (R-PA), Rep. Aaron Bean (R-FL), Rep. Rich McCormick (R-GA), Rep. Eric Burlison (R-MO), Rep. Rudy Yakym (R-IN), Rep. Brian Mast (R-FL), Rep. Dusty Johnson (R-SD), Rep. Glenn Grothman (R-WI), Rep. Barry Moore (R-AL), Rep. Brett Guthrie (R-KY), Rep. Andy Ogles (R-TN), Rep. Brian Babin (R-TX), Rep. Doug LaMalfa (R-CA), Rep. Chris Stewart (R-UT), Rep. Keith Self (R-TX), Rep. Jerry Carl (R-AL), Rep. Byron Donalds (R-FL), Rep. Michael Cloud (R-TX), Rep. Tom Tiffany (R-WI), Rep. Troy Balderson (R-OH), Rep. Alex Mooney (R-WV), Rep. Dan Bishop (R-NC), Rep. Josh Breechen (R-OK), Rep. Anna Paulina Luna (R-FL), Rep. Matt Rosendale (R-MT), Rep. Chip Roy (R-TX), Rep. Mike Lawler (R-NY), Rep. Russell Fry (R-SC), Rep. Gary Palmer (R-AL), Rep. Brad Finstad (R-MN), and Rep. Buddy Carter (R-GA).
This legislation is supported by FreedomWorks, Heritage Action, and Club for Growth.
The legislation may be read here.