To cancel certain proposed changes to loan level price adjustments by the Federal National Mortgage Association and credit fees charged by the Federal Home Loan Mortgage Corporation.
- Bill Number
- H.R. 258
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2025-01-09: Referred to the House Committee on Financial Services.
- Last Updated
- 2025-02-28T20:23:11Z
AI-Generated Summary
Purpose
This bill aims to prevent the implementation of specific pricing adjustments announced by the Federal Housing Finance Agency (FHFA) for two government-sponsored enterprises involved in the mortgage market: the Federal National Mortgage Association (commonly known as Fannie Mae) and the Federal Home Loan Mortgage Corporation (commonly known as Freddie Mac). The goal is to cancel changes that would alter how these entities charge fees on certain home loans, potentially stabilizing or preserving existing pricing structures for single-family mortgages.
Key Provisions
- Prohibition on Implementation: The FHFA and the enterprises (Fannie Mae and Freddie Mac) are barred from putting into effect the pricing changes announced on January 19, 2023, titled "FHFA Announces Updates to the Enterprises' Single-Family Pricing Framework."
- Nullification of Announcements: The specific documents outlining these changes—Fannie Mae's Lender Letter LL-2023-01 and Freddie Mac's Bulletin 2023-1—are declared to have no legal force or effect.
- Scope: The bill targets adjustments to "loan level price adjustments" (additional fees based on individual loan characteristics, like credit score or loan-to-value ratio) by Fannie Mae and "credit fees" (similar risk-based charges) by Freddie Mac.
Significant Changes to Existing Law
- This legislation would override FHFA's regulatory authority under the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, which generally allows the agency to set pricing rules for these enterprises to ensure financial stability in the housing market.
- It introduces a direct congressional veto on a specific prior announcement, effectively freezing those proposed rules without altering broader FHFA powers or the enterprises' overall operations.
Potential Impacts
- On Government Agencies: FHFA would lose the ability to enforce these particular pricing updates, potentially limiting its flexibility in managing mortgage market risks. Fannie Mae and Freddie Mac would revert to pre-2023 pricing frameworks, simplifying their operations but possibly exposing them to unadjusted risks.
- On Citizens: Homebuyers and borrowers could benefit from avoiding potential fee increases on mortgages, which might otherwise raise borrowing costs for certain groups (e.g., those with lower credit scores). This could make homeownership more affordable for some, though it might not address underlying market risks.
- On International Relations: No direct impacts, as the bill focuses on domestic U.S. housing finance.
- Broader Economy: Could stabilize mortgage rates and lending practices in the short term, supporting the housing sector without introducing new fees that might slow home sales or lending.
Main Stakeholders Affected
- Government Entities: FHFA (regulator), Fannie Mae, and Freddie Mac (enterprises that buy and guarantee mortgages to support the housing market).
- Industry Players: Mortgage lenders and servicers, who would avoid adapting to new fee structures and might see reduced costs passed on to customers.
- Citizens and Consumers: Potential homebuyers, particularly first-time or lower-credit buyers, who could face unchanged or lower loan fees.
- Real Estate Sector: Brokers, builders, and investors in housing, who rely on predictable mortgage pricing for market activity.
Notable Legal, Constitutional, or Political Implications
- Legal: The bill asserts Congress's oversight role over FHFA and the enterprises, potentially setting a precedent for legislative intervention in agency rulemaking. It could face challenges if seen as unduly interfering with executive branch functions, but it aligns with Congress's authority to regulate financial institutions.
- Constitutional: No major issues; it operates within Congress's enumerated powers to regulate interstate commerce and federal entities, without infringing on individual rights.
- Political: Represents a targeted pushback against FHFA policies, possibly reflecting concerns over fee hikes burdening borrowers amid housing affordability challenges. If passed, it could influence future debates on government involvement in private mortgage markets, highlighting tensions between regulatory stability and consumer protection.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Bice, Stephanie I. [R-OK-5]
Recent Actions
- 2025-01-09: Referred to the House Committee on Financial Services.
- 2025-01-09: Introduced in House
- 2025-01-09: Introduced in House
Bill Versions
- To cancel certain proposed changes to loan level price adjustments by the Federal National Mortgage Association and credit fees charged by the Federal Home Loan Mortgage Corporation. — issued 2025-01-09 — PDF (2 pages)