New legislation would repeal the recently enacted Loan Level Pricing Adjustments (LLPA) fee increases and reinstate the LLPA fee structure in effect prior to May 1, 2023
WASHINGTON, June 7, 2023 /PRNewswire-PRWeb/ — The National Association of Mortgage Brokers (NAMB) announces its support of H.R. 3564, the Middle – Class Homeowners Protection Act of 2023. The measure will repeal the recently enacted Loan Level Pricing Adjustments (LLPA) fee increases and reinstate the LLPA fee structure in effect prior to May 1, 2023. It would also institute a temporary LLPA fee change freeze pending a GAO review. The bill directs GAO to review the process FHFA uses to set LLPA fees, makes future LLPA fee changes subject to a standard notice and comment procedure, requires future conservator-mandated LLPA fee changes to be risk-based, and prohibits the imposition of any new LLPA fees based on the debt to-income (DTI) ratio of borrowers.
The changes to the loan-level price adjustment matrix by the Federal Housing Finance Agency went into effect May 1, and mortgage brokers across the country continue to oppose the notion that homebuyers with good credit scores and substantial down payments will pay more so fees for borrowers limited by income or wealth can be reduced.
“Borrowers who have demonstrated a propensity to manage credit in a responsible manner should not be penalized when obtaining financing.” There is data which shows that lower credit scores do not directly correlate to lower income, furthermore, there are higher income earners who fail to manage credit effectively,” NAMB President Ernest Jones noted.
While the bill passed the House Financial Services Committee in late May, the vote was taken along partisan lines. NAMB believes opposition to this policy should not be a partisan issue, it is a matter of fundamental fairness.
The National Association of Mortgage Brokers has been the voice of the mortgage industry representing the interests of mortgage professionals and homebuyers since 1973. NAMB provides mortgage professionals with advocacy, education, and rigorous certification programs to recognize members with the highest levels of professional knowledge and education. NAMB’s active lobbying and advocacy efforts focus on national and state issues, protecting the interests of its members and borrowers. As the leading national trade association for the mortgage industry, NAMB is affiliated with state associations throughout the country and represents the interests of more than 993,000 licensed and registered Mortgage Loan Originators and 68,000 licensed Mortgage Broker and Mortgage Lender businesses throughout the US. The Association hosts several meetings throughout the year. Engage the organization via social media: https://www.facebook.com/NAMBPros
Joshua Steinfeld, Steinfeld Consulting, 1 339-225-1581, [email protected]
SOURCE The National Association of Mortgage Broker