Responsible Borrower Protection Act of 2023

Responsible Borrower Protection Act of 2023

This bill prohibits the Federal Housing Finance Agency, the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) from implementing their January 2023-announced changes to the single-family pricing framework for fees on purchase, rate-term refinance, and cash-out refinance loans. The changes revise the fee charts that provide percentage adjustments based on a borrower's credit score and other factors.

The Responsible Borrower Protection Act of 2023, also known as Bill 118 hr 2928, is a piece of legislation currently being considered by the US Congress. The main goal of this bill is to protect borrowers from predatory lending practices and ensure that they are able to make informed decisions when taking out loans.

One key provision of the bill is the requirement for lenders to provide clear and transparent information to borrowers about the terms of their loans, including interest rates, fees, and repayment schedules. This is intended to prevent borrowers from being taken advantage of by lenders who may try to deceive them with hidden fees or confusing terms.

Another important aspect of the bill is the establishment of a Borrower Protection Bureau, which would be responsible for enforcing the regulations outlined in the legislation and investigating complaints of predatory lending practices. This bureau would have the authority to penalize lenders who violate the law and provide restitution to affected borrowers. Overall, the Responsible Borrower Protection Act of 2023 aims to promote fairness and transparency in the lending industry and protect consumers from unscrupulous practices. It is currently being debated in Congress, and its ultimate fate will depend on the support it receives from lawmakers.