Mortgage loan fee changes prompt GOP outcry

The Federal Housing Finance Agency implemented the new structure on May 1.
A sprawling neighborhood in Colorado Springs, Colo., on Wednesday, Nov. 23, 2022. (AP Photo/Thomas Peipert, File)

Eighteen Republican governors are calling on President Biden to rescind recent changes to the structure of fees that Fannie Mae and Freddie Mac add to home mortgage loans, concerned that homebuyers with higher credit will bear the brunt of loan level pricing adjustment costs.

Led by Georgia Gov. Brian Kemp (R) and Missouri Gov. Mike Parson (R), wrote in a letter Wednesday that “the new LLPA framework will inevitably increase mortgage costs for lower-risk individuals and handicap those borrowers with larger down payments,” as well as “provide no incentive to borrowers to maintain good credit.”

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