WASHINGTON—U.S. Senator Kevin Cramer (R-ND), member of the Senate Banking Committee, joined his colleagues in introducing the Middle Class Borrower Protection Act to reverse a harmful Biden administration provision which will increase mortgage rates for many middle class Americans.
In May, the Biden administration implemented changes to the Loan-Level Price Adjustment (LLPA) which punishes responsible home buyers with good credit to subsidize those with bad credit. This bill will restore the LLPA to its former state and ensure the irresponsible decision-making which led to this change cannot be repeated.
“One of the primary indicators of financial health is a borrower’s credit score and not just income or bank account balances. Instead of benefitting middle-class families who save and spend within their means, the Biden administration’s rule punishes responsible Americans with higher rates and provides perverse incentives for already risky borrowers,” said Senator Cramer. “Let’s end this nonsense and protect responsible, hard-working Americans by nullifying this rule and preventing any other foolish proposals like it.”
Joining Senator Cramer are Senators Mike Braun (R-IN), Roger Marshall (R-KS), John Thune (R-SD), Thom Tillis (R-NC), Cindy Hyde-Smith (R-MS), Jerry Moran (R-KS), Tom Cotton (R-AR), John Cornyn (R-TX), John Barrasso (R-WY), Ted Budd (R-NC), Roger Wicker (R-MS), Marco Rubio (R-FL), and Ted Cruz (R-TX).
Last month, Congressman Warren Davidson (R-OH-08) introduced the companion legislation which passed the House of Representatives with bipartisan support.
Click here for bill text.
Background:
In April, Senator Cramer sent a letter to FHFA Director Sandra Thompson urging her to reverse the rule. He also voiced his opposition to the policy at a Banking Committee hearing in April.