Congress moves to block mortgage fee hikes, reversing Biden-era pricing reform
H.R. 258 — 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. · Filed by Stephanie Bice (R-OK) · Introduced Jan 9, 2025 · Referred to committee
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What it does
This bill blocks the Federal Housing Finance Agency (FHFA) and the two government-sponsored mortgage enterprises—Fannie Mae and Freddie Mac—from implementing pricing changes announced in January 2023 that adjusted loan-level price adjustments and credit fees. The bill voids those changes entirely, preventing them from taking effect.
Why we flagged it
The bill's operative mechanism is to cancel and void specific pricing changes by the GSEs, rolling back fee increases announced in 2023. It is a direct intervention in mortgage pricing, not a broader policy reform.
What the text implies
- Reversing the 2023 pricing framework may reintroduce cross-subsidies between borrower risk tiers, potentially raising costs for lower-risk borrowers who were benefiting from risk-based pricing.
- The GSEs' financial models and capital adequacy may have been recalibrated around the 2023 fee structure; rolling it back could affect their ability to absorb credit losses or meet regulatory capital requirements.
The full analysis lists 4 implications of this text.
Who stands to gain
mortgage borrowers (lower fees/rates); mortgage originators and servicers (preserved fee revenue)