2023: Schweikert Voted To Rescind The Fannie Mae And Freddie Mac Loan-Level Pricing Adjustment Framework And Re-Implement The Loan-Level Price Adjustment Framework For Single-Family Mortgages That Was In Effect Before May 2023. In June 2023, according to Congressional Quarterly, Schweikert voted for the Middle Class Borrower Protection Act of 2023, which would "rescind, within 60 days of the bill's enactment, the Fannie Mae and Freddie Mac loan-level pricing adjustment framework issued in 2023 by the Federal Housing Finance Agency. It would require the FHFA to reimplement the LLPA framework for single-family mortgages that was in effect prior to May 1, 2023. It would prohibit FHFA from further modifying the LLPA framework until 90 days after the Government Accountability Office has completed a study on the effects of the modifications made by FHFA in January 2023. It would require the GAO to analyze the methodology used by FHFA to develop the revised LLPAs, the economic impact of such revisions, their effects on the safety and soundness on Fannie Mae and Freddie Mac, and whether the revised framework deviated from the principle of risk-based pricing. It would require the GAO to submit a report to Congress on the study within 14 months of the bill's enactment. The bill would require FHFA to follow administrative rulemaking procedures as 'close as practicable' when proposing future adjustments to the LLPA framework following the completion of the GAO study. It would require such revisions to be based, to the 'greatest extent feasible,' on the risk posed by mortgage loans to Fannie Mae and Freddie Mac. It would prohibit FHFA or Fannie and Freddie from imposing any loan-level pricing adjustment fee that is based on a borrower's debt-to-income ratio." The vote was on passage. The House passed the bill by a vote of 230 to 189, thus the bill was sent to the Senate. [House Vote 289, 6/23/23; Congressional Quarterly, 6/23/23; Congressional Actions, H.R. 3564]
The Bill Would Rescind The New Fannie Mae And Freddie Mac Loan-Level Pricing Adjustment Framework. According to Congressional Quarterly, "Convenes at 9 a.m. to consider legislation (HR 3564) to rescind the new Fannie Mae and Freddie Mac loan-level pricing adjustment framework, with votes expected at 10:45 a.m." [Congressional Quarterly, 6/23/23]
Representative Patrick McHenry (R) Claimed The Loan-Level Pricing Adjustment Framework Made Housing Less Affordable, Put Taxpayers At Risk By Threatening The Housing Finance System, And Potentially Imposed An Additional $1.8 Billion In New Fees For 2 Years For Americans With Credit Scores Over 680. According to Housingwire, "'The Biden administration wants to use mortgage fees to put their finger on the scale and decide who gets to pay more and who gets to pay less,' House Financial Services Committee Chairman Patrick McHenry (R-N.C.) said in a statement. 'This will make housing less affordable, not more, and puts taxpayers at risk by threatening the safety and soundness of our housing finance system.' Nearly 95% of Americans have credit scores above 680, and the group could face an extra $1.8 billion in new fees over the next two years under the LLPA plan, according to McHenry." [Housingwire, 6/27/23]
FHFA Director Sandra Thompson Shut Down Claims That The Proposed Loan-Level Changes Would Punish Borrowers With Good Credit. According to Housingwire, "The proposed LLPA changes caused uproar when announced earlier this year. The main issue stemmed from the belief that the changes would punish borrowers with good credit, which FHFA Director Sandra Thompson later characterized as a misconception." [Housingwire, 6/27/23]
2023: Schweikert Effectively Voted For The Middle Class Borrower Protection Act, Which Would Rescind Federal Housing Finance Agency Loan Price Adjustments. In June 2023, according to Congressional Quarterly, Schweikert voted for the "adoption of the rule (H Res 524) that would provide for floor consideration of the Middle Class Borrower Protection Act (HR 3564) [...] The rule would provide for up to 80 minutes of general debate on HR 3799 and one hour of general debate on HR 3564 and H Res 461." The vote was on the adoption of the rule. The House adopted the rule by a vote of 215 to 211. [House Vote 275, 6/21/23; Congressional Quarterly, 6/21/23; Congressional Actions, H.Res. 524; Congressional Actions, H.R. 3564]
2023: Schweikert Effectively Voted For The Middle Class Borrower Protection Act, Which Would Rescind Federal Housing Finance Agency Loan Price Adjustments. In June 2023, according to Congressional Quarterly, Schweikert voted for the "motion to order the previous question (thus ending debate and possibility of amendment) on the rule (H Res 524) that would provide for floor consideration of the Middle Class Borrower Protection Act (HR 3564) [...] The rule would provide for up to 80 minutes of general debate on HR 3799 and one hour of general debate on HR 3564 and H Res 461." The vote was on a motion to order the previous question. The House agreed to the motion by a vote of 215 to 207. [House Vote 274, 6/21/23; Congressional Quarterly, 6/21/23; Congressional Actions, H.Res. 524; Congressional Actions, H.R. 3564]