HR 53: Responsible Borrower Protection Act of 2025

Cosponsors

Andrew Ogles (R) TN, Eric Burlison (R) MO, Randy Weber (R) TX, Ben Cline (R) VA, Mike Bost (R) IL, Michael Cloud (R) TX

Summary

Responsible Borrower Protection Act of 2025

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. Overall, these changes increase the percentage adjustments, with variations based on the particular risk profile of the loan.

Subjects

Credit and credit markets, Government National Mortgage Association (Ginnie Mae), Housing finance and home ownership, Inflation and prices, User charges and fees

Policy Areas

Finance and Financial Sector

Next Steps

The bill has been referred to the House Committee on Financial Services. The next steps could include committee hearings, markups, and a vote in the full House of Representatives, if the committee decides to advance it.

Social Impact

Preventing fee changes could affect home affordability, depending on how those changes would affect mortgage rates. Lower mortgage rates would potentially increase homeownership rates among certain groups, while higher rates would have the opposite effect. The magnitude of the social impact depends on the scale of the proposed fee changes and their effect on mortgage rates.

Business Impact

If passed, the bill would prevent changes to credit fees charged by Fannie Mae and Freddie Mac, potentially impacting their revenue and profitability. Lenders who rely on these fees might see their costs affected. The impact would depend on the specifics of the cancelled fee changes.

Financial Impact

The bill could affect the financial stability of Fannie Mae and Freddie Mac, as well as the cost of mortgages for borrowers. Preventing fee increases might reduce their income, potentially impacting their ability to support the mortgage market. The magnitude of the financial impacts would depend heavily on the size and nature of the cancelled fee changes.

Bill History

Friday, January 3, 2025
IntroReferral - Referred to the House Committee on Financial Services.

Friday, January 3, 2025
IntroReferral - Introduced in House

Bill Text

Introduced in House January 3, 2025
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Sponsors