# What This Bill Actually Does

This bill stops two major government-backed mortgage companies—Fannie Mae and Freddie Mac—from putting new fees on home loans. Back in January 2023, these companies announced they were going to change how they price mortgages, which would have added extra charges to certain loans. This bill says "not so fast" and prevents those changes from ever taking effect.

To understand why this matters, you need to know that Fannie Mae and Freddie Mac don't lend money directly to homebuyers. Instead, they buy mortgages from banks and other lenders, which helps keep the mortgage market running smoothly. When they announced their pricing changes two years ago, it would have meant that borrowers with certain financial situations—like those with lower credit scores, smaller down payments, or other risk factors—would have paid higher fees when getting a mortgage. The proposed changes were supposed to help these companies manage their financial risks better, but critics argued the fees would make homeownership more expensive for people who already struggle to afford it.

If this bill passes, those fee increases simply won't happen. Borrowers won't see their mortgage costs go up because of these particular pricing changes. However, it's worth noting this doesn't change any fees that are already in place—it just blocks new ones that were planned. For most people shopping for a mortgage, this means their costs would stay the same rather than potentially increasing, which could make homeownership slightly more affordable for those who would have been hit hardest by the new fees.

To cancel certain proposed changes to loan level price adjustments by the Federal National Mortgage Association and credit fees charged by the Federal Home Loan Mortgage Corporation.

Bice, Stephanie I.

<p>This bill prohibits the Federal Housing Finance Agency, the Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (Freddie Mac) from implementing changes to the single-family home loan pricing framework for upfront fees on certain home loans, announced in January 2023. The changes revise the fee charts that provide percentage adjustments based on a borrower's credit score and other risk factors.&nbsp;Overall, these changes increase the percentage adjustments, with variations based on the particular risk profile of the loan.</p>