McHenry Speaks in Support of Middle Class Borrower Protection Act
House Republicans are taking action to reverse Biden’s socialist mortgage fee scheme
Washington,
June 23, 2023 -
Today, the Chairman of the House Financial Services Committee, Patrick McHenry (NC-10), delivered remarks in support of H.R. 3564, the Middle Class Borrower Protection Act, on the House floor. H.R. 3564, offered by Housing and Insurance Subcommittee Chairman Warren Davidson (OH-08), will reverse the Biden Administration’s changes to the Federal House Finance Agency’s (FHFA) Loan Level Pricing Adjustment structure, which acts as a tax on creditworthy homebuyers to subsidize those with lower credit scores.
Watch Chairman McHenry’s remarks here or by clicking the image above.
Read Chairman McHenry’s remarks as delivered:
“Thank you, Mr. Chairman. I want to thank my colleague and the Chair of the Subcommittee on Housing, Mr. Davidson, for the fine work he has put in this Congress on the Housing Subcommittee.
“I rise in support of Mr. Davidson's Bill: The Middle Class Borrower Protection Act.
“What I would say to my colleagues is: is it right to raise the cost of borrowing for families that have worked hard and saved up to buy a home in order to subsidize those who are less creditworthy? I don’t think so.
“This bill would ensure that doesn’t happen under this new Biden Administration rule set.
“What we have before us today is a bill that would say to the 95% of Americans nationwide that have a credit score over 680 that you're going to pay more.
“And those that are less creditworthy, under 680, the 5% of Americans that are under 680, will pay less.
“Under this new Biden Administration proposal, if we don't act with this bill, almost half of those borrowers will face an extra 1.8 billion dollars in new fees over the next two years. That is a tax on more credit-worthy people when they access a mortgage.
“I don't think that's proper. I don't think that's just. And those are middle class borrowers in each of our districts. Republican and Democrat. Independent. Rural and urban. Young and old.
“They are across the country, and what we're doing is trying to stand up for them.
“But for some reason, the Biden Administration wants to put their finger on the scales and decide who gets to pay more and who gets to pay less. That is inherently unfair.
“Whether that's in my district in Western North Carolina or districts on the other side of the country. It will make housing less affordable –not more. It puts taxpayers at risk by threatening the safety and soundness of our housing finance system, and we have a chance to change that today and do the right thing.
“If you want to protect middle class borrowers in your district from a new tax, you will support this bill. If you want to take action to address housing affordability, you will support this bill. And if you want more Americans to achieve the dream of home ownership, you'll vote for this bill.
“So, I want to thank my colleagues on the House Financial Services Committee on both sides of the aisle for the good work they’ve put in this Congress.
“I want to thank my colleague Mr. Davidson for his leadership on this important housing issue that touches all of us across the country, and with that, I urge you a yes vote and will yield back the balance of my time.”
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