Is Biden Actually PUNISHING the Middle Class with Higher Loan Rates? FHFA & LLPA

News reports that the Biden Administration is punishing the middle class by creating an unfair LLPA (loan level pricing adjustments) through the FHFA (Federal Housing Finance Administration). The LLPA matrix determines what mortgage rate adjustments can be charged by lenders for Fannie Mae and Freddie Mac loans.

This has been highly politicized by critics of President Biden although the FHFA is an autonomous organization and doesn’t control the outcome of their decisions. The 12 person panel is fully independent and makes decisions baed on trends in mortgage lending and keeping liquidity and stability in the housing market.

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