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Rep. Gagnon says legislative fix will preserve consumer protections after Fannie Mae change
Summary
Representative Gagnon told the committee S.780 is a legislative fix after Fannie Mae retired a net yield index in February 2024; the bill clarifies when discount points and fees are considered so lenders can continue to offer borrowers preferred loan terms. The committee gave S.780 a favorable report and referred it to the floor; no numeric tally appears on the transcript.
Representative Gagnon said S.780 addresses a gap created when Fannie Mae stopped posting a required net yield index in February 2024 and retired the website. "A legislative fix is needed because in 02/2024, Fannie Mae stopped posting the required net yield index and retired the website," he said, adding that the Department of Consumer Affairs had issued an administrative interpretation in the interim.
Gagnon said S.780 clarifies conditions under which discount points are considered and would regulate the calculation of points and fees on home loans to keep interest rates and associated costs within reasonable market standards. He framed the bill as intended to protect consumers and preserve lenders' ability to offer borrowers preferred loan terms.
With no substantive questions, the committee moved, seconded, and by show of hands gave S.780 a favorable report to the House floor; the transcript records the favorable report but does not provide a roll-call tally.
