Today, the Chairman of the House Financial Services Committee, Patrick McHenry (NC-10), and the Chairman of the Subcommittee on Housing and Insurance, Warren Davidson (OH-08), issued the following statements after the Federal Housing Finance Agency (FHFA) announced it would rescind its unworkable upfront Debt-to-Income fee.
“I’m glad to see the FHFA rescind its unworkable changes to debt-to-income ratio-based fees,” said Chairman McHenry. “Subcommittee Chairman Davidson and I have been raising the alarm about the impact misguided changes like this will have on homebuyers, and I appreciate Director Thompson announcing this action in response. Director Thompson should have done the same with FHFA’s changes to the upfront Loan-Level Pricing Adjustment fees that went into effect on May 1st, but she did not. Instead, Congress will now take action to end this tax on creditworthy borrowers. Both FHFA-mandated price changes would inject additional risk into our housing finance system, threatening the stability of the GSEs and our financial system as a whole. The House Financial Services Committee will continue to hold the Biden Administration’s regulators accountable for forcing progressive priorities through our financial system, rather than focusing on their statutory mandates.”
“It’s encouraging to see the FHFA listen to my call to rescind its unworkable debt-to-income ratio-based fee,” said Subcommittee Chairman Davidson. “It was clear from the outset that this upfront fee would hurt future mortgage borrowers. As the Chairman for the Subcommittee on Housing and Insurance, I am committed to an efficient mortgage market and avoiding the FHFA's recent distortions is important to preserve market integrity. It’s imperative that we continue to push the FHFA to reassess and repeal their other agenda items that hurt credit-worthy borrowers.”
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