U.S. Rep. Ken Calvert (R-CA) on Tuesday sponsored legislation that would cancel certain proposed changes to credit fees charged by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.
The congressman’s introduction of the Secure Americans from Financial Exploitation (SAFE) Act, H.R. 3041, follows action on Monday by the Federal Housing Finance Agency (FHFA), which implemented new loan-level price adjustments (LLPA) on conventional mortgages. The LLPAs mean borrowers with higher credit scores will generally have to pay higher upfront fees, while borrowers with low credit scores will get lowered fees, according to information provided by Rep. Calvert’s office.
“It’s blatantly unfair to impose increased fees on homebuyers simply because they have a higher credit score,” Rep. Calvert said. “With interest rates on the rise, these new higher fees will only make home buying more expensive for American families.”
If enacted, H.R. 3041 would block the implementation of the FHFA changes to the single-family housing mortgage credit fee pricing framework, the information says.
“Raising rates on homebuyers with good credit scores is unnecessarily punitive and stands contrary to the risk-based approach commonly associated with our housing finance programs,” said Rep. Calvert. “Congress should pass the SAFE Act now to stop these new high credit score fees on homebuyers and focus on strengthening traditional federal programs designed to help first-time, veteran, and other homebuyers.”
H.R. 3041 has been referred to the U.S. House Financial Services Committee for consideration.