5/22/2023 in News & Media, Press Releases

NFHA Issues Statement Opposing the Middle Class Borrower Protection Act

May 22, 2023
Contact: Izzy Woodruff | iwoodruff@nationalfairhousing.org

NFHA Issues Statement Opposing the Middle Class Borrower Protection Act

Washington, D.C. — Nikitra Bailey, Executive Vice President of the National Fair Housing Alliance (NFHA), issued the following statement opposing the Middle Class Borrower Protection Act of 2023 introduced by Rep. Warren Davidson (R-OH). The bill would require the Federal Housing Finance Agency to reverse recent changes to its single-family pricing matrix for Fannie Mae and Freddie Mac.

“We are concerned that Congress is attempting to set mortgage pricing fees for loans purchased by the Government Sponsored Enterprises (GSEs). This is the role of their regulator, the Federal Housing Finance Agency (FHFA). A return to the former pricing matrix would raise the cost of homeownership and make it more expensive for first-time homebuyers and borrowers of color seeking conventional loans. The bill also fails to advance housing affordability and does not offer a solution for the millions of mortgage-ready consumers who desire and can succeed in homeownership.

“Prior to FHFA mandating upfront Loan Level Price Adjustment (LLPA) fees, the GSEs had a stronger track record of purchasing loans made to Black, Latino, AAPI, and Native communities. Since FHFA instituted LLPAs in 2008, the GSEs have grossly underserved the very borrowers on whom the health of the future housing finance system depends. LLPAs also unfairly place the potential burden of future catastrophic risk on the backs of the borrowers who were most harmed by the Great Recession. 

“LLPAs must be eliminated. They force creditworthy first-time homebuyers and borrowers of color to pay more for mortgages, which prices them out of the conventional market. The GSEs’ charters mandate that they serve the whole of the market — not just wealthier borrowers purchasing second homes and investors. FHFA’s recent changes move the system toward greater safety and soundness, which is ultimately in everyone’s best interest.”


The National Fair Housing Alliance (NFHA) is the country’s only national civil rights organization dedicated solely to eliminating all forms of housing and lending discrimination and ensuring equal opportunities for all people. As the trade association for over 170 fair housing and justice-centered organizations and individuals throughout the U.S. and its territories, NFHA works to dismantle longstanding barriers to equity and build diverse, inclusive, well-resourced communities.