Lucas Applauds Passage of the Middle Class Borrower Protection Act

Jun 23, 2023
Washington, DC – Congressman Frank Lucas (OK-03) released the following statement today after the U.S. House of Representatives passed the Middle Class Borrower Protection Act. Lucas supported the legislation.
“The Biden Administration wants to subsidize borrowers with lower credit scores by charging higher fees to those with higher credit scores. This policy is fundamentally inconsistent with our capitalist system,”  said Congressman Frank Lucas.  “That’s why House Republicans passed the Middle Class Borrower Protection Act to repeal this misguided and unworkable pricing framework.” 

On May 1, 2023, the Federal Housing Finance Agency (FHFA), the agency which oversees the GSEs, “recalibrated” how loan level pricing adjustment fees are set for the majority of primary residences. This pricing change increased fees for many borrowers while cutting fees for a handful of borrowers with the worst credit history. In fact, every borrower with a credit score under 680 will see their fees reduced or kept the same, regardless of their down payment level, while half of all borrowers with scores above 680 will see their fees go up. 

The Middle Class Borrower Protection Act would:
Eliminate the Biden Administration’s new socialist tax on creditworthy homebuyers to subsidize those with riskier loans. This pricing change increased fees on one-out-of-every-two borrowers with higher credit scores who finance their loans through Fannie Mae and Freddie Mac (the GSEs). At the same time, it cut the fees paid by nearly every highest risk borrower with the worst credit scores, creating new concerns regarding the GSE’s safety and soundness. H.R. 3564, introduced by Housing and Insurance Subcommittee Chairman Warren Davidson and ordered reported favorably by the Financial Services Committee on May 24, ensures the Biden Administration cannot force middle class borrowers to subsidize risky loans. 

Click here for full text of the bill. 


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