House Passes Bill to Block New Fee Structure on Fannie-Freddie Home Loans

Housing Finance
Published
Contact: Scott Meyer
[email protected]
VP, Government Affairs
(202) 266-8144

The House today passed the Middle Class Borrower Protection Act, legislation that would block the Federal Housing Finance Agency (FHFA) from implementing a new pricing framework for single-family home loans eligible for purchase by Fannie Mae and Freddie Mac that will lower mortgage fees for some borrowers and raise fees for others. The revised fees became effective on May 1.

Earlier this year, NAHB Chairman Alicia Huey sent a letter to FHFA Director Sandra Thompson opposing increased fees for home buyers making significant downpayments and having high credit scores. Huey expressed particular concern that borrowers facing the largest fee increases were those with credit scores between 720 and 760 and loan-to-value ratios between 80.01% and 85%.

In a letter to lawmakers before the House vote, NAHB expressed concerns about Congress intervening in the administration of Fannie Mae and Freddie Mac’s single-family guarantee fee pricing. NAHB believes this is counterproductive because it will create uncertainty in the housing sector whether Fannie and Freddie can provide a dependable flow of affordable mortgage liquidity in all markets and throughout all economic cycles. Rather, Congress should remain focused on the goal of comprehensive reform of the housing finance system, including Fannie Mae and Freddie Mac, and fixing the structural flaws that persist 15 years after the Great Recession.

The bill also calls for Fannie Mae and Freddie Mac to extend a separate 10-basis-point guarantee fee increase to pay for the cost of the legislation. Guarantee fees, also known as g-fees, cover projected credit losses from borrower defaults over the life of the loans, administrative costs, and a return on capital. NAHB’s letter expressed concern that higher g-fees charged to borrowers hurt home buyers and housing affordability.

The Senate is unlikely to consider this legislation.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

House Prices

Jun 13, 2025

Which Markets Have Seen the Greatest House Price Appreciation Since the Pandemic?

House price growth slowed in the first quarter of 2025, partly due to a decline in demand and an increase in supply. But since the onset of the COVID-19 pandemic, house prices have surged nationally. See which markets saw the greatest - and the least - house price appreciation since the pandemic.

Professional Women in Building Council | Workforce Development

Jun 12, 2025

How PWB Members are Bridging the Skilled Labor Gap in Construction

NAHB's Professional Women in Building (PWB) Council has announced a new workforce development partnership with SkillsUSA, a national education nonprofit.

View all

Latest Economic News

Economics

Jun 13, 2025

Household Real Estate Asset Value Falls to Start the Year

The market value of household real estate assets fell from $48.1 trillion to $47.9 trillion in the first quarter of 2025, according to the most recent release of U.S. Federal Reserve Z.1 Financial Accounts. The value of household real estate assets declined for three consecutive quarters after peaking at $48.8 trillion in the second quarter of 2024 but remains 2.1% higher over the year.

Economics

Jun 12, 2025

Producer Prices Rise in May: New Construction Input Analysis

Prices for inputs to new residential construction—excluding capital investment, labor, and imports—rose 0.2% in May, following a (revised) decrease of 0.2% in April. These figures are taken from the most recent Producer Price Index (PPI) report published by U.S. Bureau of Labor Statistics.

Economics

Jun 11, 2025

Inflation Up Slightly in May

Despite inflationary pressure from tariffs, inflation in May rose slightly but came in softer than expected. The Consumer Price Index increased from 2.3% in April to 2.4% in May year-over-year, according to the Bureau of Labor Statistics’ report.