WASHINGTON, D.C. – On June 23, House Majority Whip Tom Emmer (MN-06) celebrated the passage of Representative Warren Davidson’s (OH-08) Middle-Class Borrower Protection Act. Emmer was an original cosponsor of the bill.
“Americans are already struggling after years of President Biden’s failing economy. Homeownership already feels out of reach and now this administration wants to subsidize individuals with a history of financial irresponsibility and penalize Americans who have worked hard to build strong credit,” said Emmer.
“We were proud to cosponsor Representative Davidson’s legislation to ensure the United States never adopts a credit redistribution scheme,” Emmer concluded.
Emmer’s office recently surveyed Sixth District Constituents on the impacts of the Federal Housing Finance Agency (FHFA) rule. 93% of the 6,000 respondents said that prospective homebuyers with good credit should not be forced to subsidize high-risk borrowers.
Emmer spoke in opposition to the FHFA rule change in a recent Financial Services Committee hearing. You can watch his remarks here. A transcript of the Congressman’s remarks can be found here.
Background:
The Middle-Class Borrower Protection Act rescinds the new rule issued by the Federal Housing Finance Agency (FHFA) that would have made changes to the fees charged by mortgage lenders. The FHFA rule would have increased fees for half of all prospective borrowers with FICO scores above 680 while decreasing fees for 90% of those with credit scores below 680, regardless of how much of a down payment they made or if they qualify as low income. 19 out of 20 Americans have credit scores above 680.
You can read the text of the Middle-Class Borrower Protection Act here.
Original source can be found here
