Marshall, Braun, colleagues introduce legislation to reverse unfair Biden mortgage rule

Washington, D.C. – Yesterday, Sen. Marshall and Sen. Braun introduced the Middle Class Borrower Protection Act to reverse a harmful Biden administration provision that increases mortgage rates for many middle class Americans. In May, the Biden Administration implemented changes to the Loan-Level Price Adjustment (LLPA) that punishes responsible home buyers with good credit to subsidize those with bad credit. This bill would restore the LLPA to its former state and ensure that the irresponsible decision-making that led to this change will not be repeated.

In addition to Marshall and Braun, U.S. Senators John Thune, Thom Tillis, Cindy Hyde-Smith, Jerry Moran, Tom Cotton, John Cornyn, John Barrasso, Ted Budd, Roger Wicker, Kevin Cramer, Marco Rubio, Ted Cruz and Rick Scott introduced the legislation in the Senate. Last month, Rep. Warren Davidson introduced the companion legislation which passed the House of Representatives with bipartisan support.

“The average American has a credit score over 716. The Biden administration is making home ownership more difficult for everyday Americans by raising rates for most people with a credit score over 680 to subsidize riskier borrowers. I urge my colleagues in the Senate to quickly vote to overturn this unfair rule that penalizes fiscal responsibility.”—Sen. Braun

“It is ludicrous to punish fiscally responsible buyers by charging them a higher fee in order to give risky borrowers loan-level price adjustments. Our bill will reverse this misguided choice and require the FHFA to follow the established rules and administrative procedures when making changes like this. This is unfair to every American who has worked hard and managed their finances responsibly – they shouldn’t have to pay more and be penalized for the choices of others.”—Sen. Marshall

“From his student loan bailout to punishing those Americans with a high credit score, President Biden’s policies punish millions of Americans for practicing fiscal responsibility. This legislation will prevent the Biden administration from forcing those with good credit scores to prop up those with bad ones.”—Sen. Cotton

“The Biden administration’s misguided change to mortgage fees puts the burden on fiscally responsible Americans to subsidize those with bad credit. This bill would reverse this unfair structure, and I’m happy to join my colleagues to support it.”—Sen. Cornyn 

“The Biden administration is targeting hardworking Americans who save, diligently pay their bills, and build good credit in order to subsidize mortgages for higher-risk borrowers. I’m proud to join my colleagues in introducing this common-sense legislation that would reverse this misguided and unfair policy.”—Sen. Thune

“The Biden administration continues to double-down on misguided policies that only make life more difficult for the majority of hard-working Americans. We should not be punishing fiscally responsible home buyers in order to bail out those with poor credit. This rule is fundamentally unfair and must be overturned.” – Sen. Budd   

“Making homeownership more accessible for more Americans is laudable. However, it shouldn’t mean penalizing other Americans, which is exactly what the Biden administration is doing. The Senate should follow the House and pass this legislation to shut down this unfair and misguided scheme to social-engineer the U.S. housing market.”—Sen. Hyde-Smith

“The American Dream is falling further out of reach for many, and the Biden administration is taking action to make it worse. The government should not be making home ownership harder for borrowers who have worked hard to protect their credit. This legislation would help ensure this unfair penalty is rolled back.”—Sen. Wicker

“We need to stop President Biden’s reckless proposal to social engineer the housing market by forcing homeowners to subsidize other Americans who are considered high-risk borrowers. I’m proud to join my colleagues in the effort to overturn this egregiously unfair rule.”—Sen. Tillis

“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. Let’s end this nonsense and protect responsible, hard-working Americans by nullifying this rule and preventing any other foolish proposals like it.”— Senator Cramer

“The Biden Administration’s changes to mortgage fees were unfair and misguided. By conflating credit scores with wealth, they not only engage in a gross oversimplification of a complex issue but also push a false narrative that a good credit score is only within reach for wealthy Americans. This legislation would prevent the Biden Administration from punishing financial responsibility by manipulating mortgage fees.” – Sen. Rubio

“Helping Americans achieve the dream of homeownership shouldn’t require punishing homebuyers with good credit. Rather than subsidizing high-risk borrowers and punishing fiscal responsibility, the federal government needs to be focused on reducing housing costs to make homes more affordable for all Americans.”—Sen. Moran


On May 1, 2023, the Federal Housing Finance Agency (FHFA) implemented misguided changes to the Loan Level Pricing Adjustments (LLPA), which are one-time, upfront fees charged to lenders when Fannie Mae and Freddie Mac (GSE’s) purchase their loans. These fees get passed to the borrowers in the form of higher interest rates. The change to the LLPA effectively raises rates for those with credit scores above 680 to subsidize relatively lower rates for those with credit scores below that threshold.