Congressman Doug LaMalfa voted in favor of H.R. 3564, the Middle Class Borrower Protection Act of 2023.
This bill strikes down the recently enacted Loan Level Pricing Adjustments fee increases and reinstates the LLPA fee structure in effect prior to May 1, 2023. Under the new structure, low risk borrowers (those with high credit scores) end up paying more in mortgage fees to subsidize high-risk borrowers (those with low credit scores) who have their fees reduced. The current Biden-sponsored policy rewards those with a history of financial irresponsibility and punishes Americans who have worked hard to earn a high credit score. This bill rescinds Biden’s Federal Housing Finance Agency reforms punishing responsible, hard-working Americans with higher interest rates on mortgages.
“It’s infuriating that the Biden Administration wants to strap hardworking families who did the right things to improve their credit with higher interest rates on mortgages,” LaMalfa said. “Those who live within their means and save shouldn’t be penalized for wanting to purchase a home. The Biden Administration continues to disincentivize fiscal responsibility by going after middle-income American families and those who pay back their loans and debts in favor of those who are high-risk borrowers. This isn’t the solution to affordable housing, it’s punishment for sacrificing and doing the right thing.”