IIB 
118TH CONGRESS 
1ST SESSION H. R. 3564 
IN THE SENATE OF THE UNITED STATES 
JULY 10, 2023 
Received; read twice and referred to the Committee on Banking, Housing, and 
Urban Affairs 
AN ACT 
To cancel recent changes made by the Federal Housing Fi-
nance Agency to the up-front loan level pricing adjust-
ments charged by Fannie Mae and Freddie Mac for 
guarantee of single-family mortgages, and for other pur-
poses. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Middle Class Borrower 
Protection Act of 2023’’. 
SEC. 2. REPEAL OF RECALIBRATED SINGLE-FAMILY PRIC-
ING FRAMEWORK. 
Not later than the expiration of the 60-day period 
beginning on the date of the enactment of this Act, the 
Director of the Federal Housing Finance Agency shall re-
vise the recalibrated single-family pricing framework 
charged by the enterprises for guarantee of mortgages on 
single-family housing so that such fees are identical to the 
fees of the standard single-family pricing framework in ef-
fect immediately before May 1, 2023. 
SEC. 3. RESTRICTIONS ON FHFA ADJUSTMENTS TO SINGLE- 
FAMILY PRICING FRAMEWORK. 
(a) TEMPORARY PROHIBITION
ON FURTHER AD-
JUSTMENTS TO SINGLE-FAMILY PRICING FRAMEWORK.— 
During the period beginning upon the date of the revision 
of the recalibrated single-family pricing framework pursu-
ant to section 2 and ending 90 days after the submission 
to the Congress of the report required under section 5, 
the Director may not further revise the single-family pric-
ing framework from such framework in effect pursuant 
to the revision required by section 2. 
(b) ADMINISTRATIVE PROCEDURES FOR ADOPTION 
OF ADJUSTMENTS
TO
THE SINGLE-FAMILY PRICING 
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FRAMEWORK.—After expiration of the period referred to 
in subsection (a), when proposing adjustments to the sin-
gle-family pricing framework, the Director shall follow 
procedures that are as close as practicable to those re-
quirements for a Federal agency issuing a rule under 
chapter 5 of title 5, United States Code (commonly re-
ferred to as the ‘‘Administrative Procedure Act’’). 
(c) FHFA REQUIREMENT FOR THE USE OF RISK- 
BASED PRICING.—Section 1367(b)(2) of the Federal 
Housing Enterprises Financial Safety and Soundness Act 
of 1992 (12 U.S.C. 4617(b)(2)) is amended by adding at 
the end the following new subparagraph: 
‘‘(L) ADDITIONAL
POWERS
AS
CONSER-
VATOR.—The Agency shall, as conservator for 
an enterprise, to the greatest extent feasible re-
quire that any modifications, including in-
creases, decreases, or eliminations, approved to 
a loan-level pricing adjustment fee, as such 
term is defined in section 6 of the Middle Class 
Borrower Protection Act of 2023, charged by 
an enterprise shall be based on the risk posed 
by the mortgage loan to the enterprise.’’. 
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SEC. 4. PROHIBITION OF LOAN-LEVEL PRICE ADJUST-
MENTS BASED ON DEBT-TO-INCOME RATIO. 
The Director and the enterprises shall not impose any 
loan-level pricing adjustment fee that is based on the ratio 
of the debt of the mortgagor to the income of the mort-
gagor. 
SEC. 5. GAO STUDY. 
(a) STUDY.—The Comptroller General of the United 
States shall conduct a study of the revisions made by the 
Federal Housing Finance Agency to the standard single- 
family pricing framework under the recalibrated single- 
family pricing framework to— 
(1) analyze— 
(A) the methodology, policy considerations, 
and any other objectives used by the Federal 
Housing Finance Agency as the basis for such 
revisions, including the authority cited by the 
Director under the Federal Housing Enter-
prises Financial Safety and Soundness Act of 
1992 (12 U.S.C. 4501 et seq.) to require such 
revisions; 
(B) the data, econometric modeling, and 
other inputs supplied by the enterprises during 
the revisions process; 
(C) the extent to which such revisions com-
ply with the objectives of the Enterprise Regu-
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latory Capital Framework, including the inter-
action with and treatment of any private mort-
gage insurance required in connection with a 
residential mortgage transaction; and 
(D) the economic impact of such revisions 
on various classes of lenders and borrowers af-
fected by such revisions; 
(2) determine the extent to which such revi-
sions— 
(A) were conducted on the basis of, and 
how they might deviate from, the principle of 
risk-based pricing; 
(B) deviate from the data, econometric 
modeling, and other inputs supplied by the en-
terprises during the revisions process; 
(C) achieve the objectives of the Enterprise 
Regulatory Capital Framework, including if 
such revisions have resulted in either a negative 
profitability gap or negative rate of return on 
the targeted rate of return on capital for any 
business segment under the recalibrated single- 
family pricing framework; 
(D) represent any increased risks to the 
safety and soundness of the enterprises; and 
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(3) assess the benefits that would accrue to 
first-time, low-income homebuyers based on the re-
calibrated single-family pricing framework taking ef-
fect. 
(4) assess the impacts that the recalibrated sin-
gle-family pricing framework taking effect would 
have on affordable housing preservation, rural hous-
ing, and manufactured housing. 
(b) REPORT.—The Comptroller General shall submit 
a report to the Congress setting forth the findings and 
conclusions of the study, and make the report publicly 
available online on a website of the Department, not later 
than the expiration of the 14-month period beginning on 
the date of the enactment of this Act. 
SEC. 6. DEFINITIONS. 
In this Act: 
(1) DIRECTOR.—The term ‘‘Director’’ means 
the Director of the Federal Housing Finance Agen-
cy. 
(2) ENTERPRISE.—The term ‘‘enterprise’’ has 
the meaning given such term in section 1303 of the 
Federal Housing Enterprises Financial Safety and 
Soundness Act of 1992 (12 U.S.C. 4502). 
(3) LOAN-LEVEL PRICING ADJUSTMENT FEE.— 
The term ‘‘loan-level pricing adjustment fee’’ means 
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an up-front fee paid by lenders when a mortgage 
loan is acquired by an enterprise. 
(4) RECALIBRATED
SINGLE-FAMILY
PRICING 
FRAMEWORK.—The term ‘‘recalibrated single-family 
pricing framework’’ means the loan-level pricing ad-
justment fee structure as referred to in the an-
nouncement of the Federal Housing Finance Agency 
on January 19, 2023, relating to ‘‘Updates to the 
Enterprises’ Single-Family Pricing Framework’’, 
and set forth in Federal National Mortgage Associa-
tion Lender Letter LL-2023-01 and Federal Home 
Loan Mortgage Corporation Bulletin 2023-1. 
(5) RISK-BASED
PRICING.—The term ‘‘risk- 
based pricing’’ means the calibration of fees based 
on the expected credit losses to an enterprise of each 
single-family mortgage category as defined by an en-
terprise based on the credit score and loan-to-value 
ratio characteristics of a mortgage. 
(6) STANDARD SINGLE-FAMILY PRICING FRAME-
WORK.—The term ‘‘standard single-family pricing 
framework’’ means the loan-level pricing adjustment 
fee structure in effect on April 30, 2023. 
SEC. 7. ENTERPRISE GUARANTEE FEES. 
Subsection (f) of section 1327 of the Federal Housing 
Enterprises Financial Safety and Soundness Act of 1992 
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