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Republicans move to block Biden mortgage fee hike for good-credit borrowers

The plan would use the government-supported housing companies Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) to enact the price adjustments.

House Republicans have put forward legislation to block a Biden administration more to subsidize home buyers with poor credit by imposing fees on those with good credit.

“If implemented, the latest FHFA fee change could result in thousands of dollars in additional fees for lower-risk homeowners over time, while encouraging and rewarding financial irresponsibility,” warned Arizona Republican Rep. Andy Biggs, according to the Washington Times.

The Federal Housing Finance Agency in late April unveiled a plan that Director Sandra Thompson said would “increase pricing support for purchase borrowers limited by income or by wealth.”

The plan would use the government-supported housing companies Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) to enact the price adjustments.

But Republicans contend that the plan would punish the financially responsible. Biggs, who introduced the measure alongside 30 co-sponsors, said the administration’s “agenda of equity over equality defies common sense and will endanger the stability of the housing market.”

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