Middle Class Borrower Protection Act of 2023

Bill: 118-hr-3564
Sponsor: Rep. Davidson, Warren [R-OH-8]
Introduced: 2023-05-22 in the House
Policy area: Finance and Financial Sector
Subjects: Administrative law and regulatory procedures
Congressional oversight
Credit and credit markets
Federal Housing Finance Agency
Government Accountability Office (GAO)
Government corporations and government-sponsored enterprises
Government information and archives
Government studies and investigations
Housing finance and home ownership
User charges and fees

Summary:
action_date: 2023-05-22
text: 

Middle Class Borrower Protection Act of 2023 

 
This bill rolls back changes made by the Federal Housing Finance Agency (FHFA) to the fees charged by Fannie Mae and Freddie Mac for a conventional single-family mortgage (i.e., loan-level pricing adjustments) and restricts future fee adjustments. These changes, effective May 1, 2023, revised the fee charts that provide percentage adjustments based on a mortgagor's credit score and down payment.
 
The bill reinstates the fee structure that was in place prior to May 1, 2023. 
 
The Government Accountability Office (GAO) must report on the changes made by the FHFA. Further adjustments to the fee structure by FHFA are prohibited until 90 days after the publication of the GAO report. 
 
After this period, FHFA must follow Administrative Procedure Act requirements when proposing adjustments to the fee structure. 
 
The bill also requires that, to the greatest extent feasible, revisions to the fee schedule must be based on risk. 
 
Further, FHFA, Fannie Mae, and Freddie Mac are prohibited from imposing any loan-level pricing adjustment fee that is based on the ratio of the debt of the mortgagor to the income of the mortgagor. 

action_date: 2023-06-07
text: 

Middle Class Borrower Protection Act of 2023 

 
This bill rolls back changes made by the Federal Housing Finance Agency (FHFA) to the fees charged by Fannie Mae and Freddie Mac for a conventional single-family mortgage (i.e., loan-level pricing adjustments) and restricts future fee adjustments. These changes, effective May 1, 2023, revised the fee charts that provide percentage adjustments based on a mortgagor's credit score and down payment.
 
The bill reinstates the fee structure that was in place prior to May 1, 2023. 
 
The Government Accountability Office (GAO) must report on the changes made by the FHFA. Further adjustments to the fee structure by FHFA are prohibited until 90 days after the publication of the GAO report. 
 
After this period, FHFA must follow Administrative Procedure Act requirements when proposing adjustments to the fee structure. 
 
The bill also requires that, to the greatest extent feasible, revisions to the fee schedule must be based on risk. 
 
Further, FHFA, Fannie Mae, and Freddie Mac are prohibited from imposing any loan-level pricing adjustment fee that is based on the ratio of the debt of the mortgagor to the income of the mortgagor. 

action_date: 2023-06-23
text: 

Middle Class Borrower Protection Act of 2023 

 
This bill rolls back changes made by the Federal Housing Finance Agency (FHFA) to the fees charged by Fannie Mae and Freddie Mac for a conventional single-family mortgage (i.e., loan-level pricing adjustments) and restricts future fee adjustments. These changes, effective May 1, 2023, revised the fee charts that provide percentage adjustments based on a mortgagor's credit score and down payment.
 
(Sec. 2) This section reinstates the fee structure that was in place prior to May 1, 2023. 
 
(Sec. 3) Further adjustments to the fee structure by FHFA are prohibited until 90 days after the publication of a report by the Government Accountability Office (GAO) required by section 5 of the bill. After this period, FHFA must follow Administrative Procedure Act requirements when proposing adjustments to the fee structure. 
 
This section also requires that, to the greatest extent feasible, revisions to the fee schedule must be based on risk. 
 
(Sec. 4) FHFA, Fannie Mae, and Freddie Mac are prohibited from imposing any loan-level pricing adjustment fee that is based on the ratio of the debt of the mortgagor to the income of the mortgagor. 
 
(Sec. 5) The GAO must report on the changes to the fees made by the FHFA. 
 
(Sec. 7) This section extends through FY2033 the authority of Fannie Mae and Freddie Mac to charge a guarantee fee.


Legislative actions:
action_date: 2023-07-10
text: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
action_date: 2023-06-23
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2023-06-23
text: On passage Passed by the Yeas and Nays: 230 - 189 (Roll no. 289).
action_date: 2023-06-23
text: Passed/agreed to in House: On passage Passed by the Yeas and Nays: 230 - 189 (Roll no. 289).
action_date: 2023-06-23
text: On motion to recommit Failed by the Yeas and Nays: 197 - 214 (Roll no. 288).
action_date: 2023-06-23
text: The previous question on the motion to recommit was ordered pursuant to clause 2(b) of rule XIX.
action_date: 2023-06-23
text: Mr. Cleaver moved to recommit to the Committee on Financial Services. (text: CR H3127)
action_date: 2023-06-23
text: The House adopted the amendments en gross as agreed to by the Committee of the Whole House on the state of the Union.
action_date: 2023-06-23
text: The previous question was ordered pursuant to the rule.
action_date: 2023-06-23
text: The House rose from the Committee of the Whole House on the state of the Union to report H.R. 3564.
action_date: 2023-06-23
text: DEBATE - Pursuant to the provisions of H. Res. 524, the Committee of the Whole proceeded with 10 minutes of debate on the Pettersen amendment No. 4.
action_date: 2023-06-23
text: DEBATE - Pursuant to the provisions of H. Res. 524, the Committee of the Whole proceeded with 10 minutes of debate on the Lee (NV) amendment No. 3.
action_date: 2023-06-23
text: DEBATE - Pursuant to the provisions of H. Res. 524, the Committee of the Whole proceeded with 10 minutes of debate on the Lee (NV) amendment No. 2.
action_date: 2023-06-23
text: DEBATE - Pursuant to the provisions of H. Res. 524, the Committee of the Whole proceeded with 10 minutes of debate on the Boebert amendment No. 1.
action_date: 2023-06-23
text: GENERAL DEBATE - The Committee of the Whole proceeded with one hour of general debate on H.R. 3564.
action_date: 2023-06-23
text: House resolved itself into the Committee of the Whole House on the state of the Union pursuant to H. Res. 524 and Rule XVIII.
action_date: 2023-06-23
text: The Speaker designated the Honorable Dan Newhouse to act as Chairman of the Committee.
action_date: 2023-06-23
text: Rule provides for consideration of H.R. 3564, H.R. 3799 and H. Res. 461. The resolution provides for consideration of H.R. 3564 under a structured rule with one hour of general debate; H.R. 3799 under a structured rule with eighty minutes of general debate; and H.Res. 461, under a closed rule with one hour of general debate. The resolution provides for a motion to recommit on H.R. 3564 and H.R. 3799.
action_date: 2023-06-23
text: Considered under the provisions of rule H. Res. 524. (consideration: CR H3115-3128; text: CR H3120)
action_date: 2023-06-20
text: Rules Committee Resolution H. Res. 524 Reported to House. Rule provides for consideration of H.R. 3564, H.R. 3799 and H. Res. 461. The resolution provides for consideration of H.R. 3564 under a structured rule with one hour of general debate; H.R. 3799 under a structured rule with eighty minutes of general debate; and H.Res. 461, under a closed rule with one hour of general debate. The resolution provides for a motion to recommit on H.R. 3564 and H.R. 3799.
action_date: 2023-06-07
text: Placed on the Union Calendar, Calendar No. 79.
action_date: 2023-06-07
text: Reported (Amended) by the Committee on Financial Services. H. Rept. 118-103.
action_date: 2023-06-07
text: Reported (Amended) by the Committee on Financial Services. H. Rept. 118-103.
action_date: 2023-05-24
text: Ordered to be Reported in the Nature of a Substitute (Amended) by the Yeas and Nays: 26 - 22.
action_date: 2023-05-24
text: Committee Consideration and Mark-up Session Held
action_date: 2023-05-22
text: Referred to the House Committee on Financial Services.
action_date: 2023-05-22
text: Introduced in House
action_date: 2023-05-22
text: Introduced in House