Today, Congresswoman Maxine Waters (D-CA), the top Democrat on the House Financial Services Committee, released this statement following the Federal Housing Finance Agency’s announced change to loan-level price adjustments (LLPAs).

“I applaud the Federal Housing Finance Agency (FHFA), under the leadership of Director Sandra Thompson, for updating the pricing framework of Fannie Mae and Freddie Mac. At a time when the cost of buying a home is increasing for everyone, this change will lower mortgage costs for many qualified and first-time homebuyers who are often penalized with higher upfront fees simply because they can’t make a 20% downpayment on their home.

“Unfortunately, there has been a slew of misinformation that claims this move will make homeownership more expensive for some and less so for others. First, it is important to understand that the cost of purchasing a home is increasing for everyone. It’s also important for people to understand that those with higher credit scores, who are typically wealthier homebuyers, are not being penalized or subsidizing costs for people with lower credit scores, who are often younger, first-time homebuyers. Most importantly, FHFA’s latest move will not push homeownership further out of reach for any group.

“Specifically, FHFA’s changes to the pricing grid will result in an estimated 3-4 basis point (bps) fee increase to a standard homeowner’s mortgage loan backed by either Fannie Mae or Freddie Mac. This is a minimal increase (less than 0.05%) in comparison to the 300 bps (3%) increase seen across the market since 2022. FHFA’s pricing changes will be waived for first-time homebuyers who already often pay higher fees in comparison to wealthier individuals purchasing vacation homes or investment properties.

“I commend Director Thompson for her leadership. Homebuyers in need of guidance can contact a HUD-certified housing counselor for additional assistance as they shop around for the most affordable mortgage.”

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