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CBO: Estimated Budgetary Effects of HR. 3564, the Middle Class Borrower Protection Act of 1023

 

This posting contains additional information not included in my June 22,2023 posting: HR. 3564 Middle Class Borrower Protection Act of 2023.

As posted on the website of the House Committee on Rules on June 20, 2023
https://rules.house.gov/bill/118/hr-3564

Summary.

The first six sections of H.R. 3564 would repeal the structure of upfront fees related to mortgages that was instituted by the government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, on May 1, 2023, and reinstate the fee structure that was in place prior to that date through the end of 2025. CBO estimates that enacting the bill would increase direct spending by $900 million in each of fiscal years 2024 and 2025. That increase in spending would occur because the amount of fees paid under the fee structure that was in place before May 1, 2023, would be less than under the existing structure.

Beginning in 2026, CBO expects that Federal Housing Finance Agency would institute an updated fee structure, based on an assessment by the Government Accountability Office (GAO), that would be broadly consistent with our current baseline projections. The actual fees could be higher or lower than those projections.

Cost Estimate

Legislative Information.

Notes:

Established in 1974, The Congressional Budget Office is a federal agency within the legislative branch of the United States government.  It is charged with providing  members of Congress  non partisan, objective  analysis of budgeting and economic issues to support the congressional budget process. Each year, CBO economists and budget analysts produce dozens of reports and hundreds of cost estimates for proposed legislation.

For the past several months I have been receiving  directly from CBO links to  which I now plan to begin posting  selectively on this blog in the interest of information sharing.  If there appears to be sufficient interest among readers of this blog over a period of time, I plan to continue posting selections I receive from CBO.

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