Policies under fire include new capital controls for government-sponsored enterprises (GSEs) called the Enterprise Regulatory Capital Framework (ERCF) and the controversial GSE-imposed loan-level restrictions on lenders. Includes fee price adjustments. Price Adjustment (LLPA).
But Thompson defended the policy, arguing that some reports contained inaccurate or misleading information about the impact the policy could have on high-credit borrowers.
“As Rep. Cleaver rightly pointed out at last week’s subcommittee hearing on the issue, housing finance is a complex issue, and the pricing grid underpinning this framework is not easily understood,” Thompson said. said in a written statement. “Unfortunately, certain media reports distort basic facts by making incomplete and misleading portrayals of these price changes. We often make the fundamental mistake of assuming that the pricing grid that has been put into place is perfectly aligned with the risks that companies face.”
Thompson characterized this as a “myth”, noting that the pricing grid in effect prior to the rollout of these updates had not been updated for many years and “did not fully reflect the capital framework required by companies.” said. follow. ”
Mr. Thompson also directly targeted the claim that high-credit borrowers were adversely affected by subsidies to low-credit borrowers.
“I would like to make one important point clear, which is worth repeating,” Thompson said. I will not be charged,” he said. “That’s not true at all.”
Rather, the latest pricing framework put in place by the agency will help fulfill the hearing’s title of “protecting homeowners and taxpayers,” Thompson said.
“First, the updated pricing framework will help U.S. homeowners by eliminating down payments for many creditworthy borrowers (e.g., low-income first-time homebuyers), and We will help US homeowners by raising fees on products that are not central to homeownership (such as second homes), like homes and vacation homes,” she said. “These targeted changes will promote achievable and sustainable homeownership. It allows us to build capital in a way that
Thompson’s comments also included a reference to the FHFA’s review of the federal mortgage banking system announced in August 2022. Proactive review of credit score models in conjunction with GSEs. Technological advances sought by the GSE itself. Postponement of payments to borrowers facing financial difficulties.
Both housing industry advocates and politicians voiced concerns before the FHFA withdrew its plans to restructure the LLPA. In April, House Republicans introduced a bill that would block the LLPA changes from taking effect.
Thompson said at the time that the agency “will provide more transparency on the process of setting companies’ single-family home guarantee fees and seek public input on this issue.”