Middle Class Borrower Protection Act of 2023

What H.R. 3564 does, in plain terms

Middle Class Borrower Protection Act of 2023 This bill rolls back changes made by the Federal Housing Finance Agency (FHFA) to the fees charged by Fannie Mae and Freddie Mac for a conventional single-family mortgage (i.e., loan-level pricing adjustments) and restricts future fee adjustments. These changes, effective May 1, 2023, revised the fee charts that provide percentage adjustments based on a mortgagor's credit score and down payment. (Sec. 2) This section reinstates the fee structure that was in place prior to May 1, 2023. (Sec. 3) Further adjustments to the fee structure by FHFA are prohibited until 90 days after the publication of a report by the Government Accountability Office (GAO) required by section 5 of the bill. After this period, FHFA must follow Administrative Procedure Act requirements when proposing adjustments to the fee structure. This section also requires that, to the greatest extent feasible, revisions to the fee schedule must be based on risk. (Sec. 4) FHFA, Fannie Mae, and Freddie Mac are prohibited from imposing any loan-level pricing adjustment fee that is based on the ratio of the debt of the mortgagor to the income of the mortgagor. (Sec. 5) The GAO must report on the changes to the fees made by the FHFA. (Sec. 7) This section extends through FY2033 the authority of Fannie Mae and Freddie Mac to charge a guarantee fee.

Official summary by the Congressional Research Service, via Congress.gov.