HB 908

Present law provides that the maximum effective rate of interest per annum for home loans is set at an amount equal to two percentage points above the most recent weighted average yield of the accepted offers of the Federal National Mortgage Association's current free market system auction for commitments to purchase conventional h o me mortgages (FNMA Auction). In the event the Federal National Mortgage Association discontinues the conduct of the auction, the maximum effective rate of interest per annum for home loans must be set at an amount equal to four percentage points above th e index of market yields of long term government bonds adjusted to a 30-year maturity by the department of the treasury. This bill removes all of the above provisions and, instead, requires the maximum effective rate of interest per annum for home loans to be set at an amount equal to four percentage points above the average prime offer rate, as defined in federal law, that applies to a 30-year fixed loan, as published by the federal financial institutions examination council, or its successor federal e n tity. ON MARCH 17, 2025, THE SENATE SUBSTITUTED HOUSE BILL 908 FOR SENATE BILL 749 AND RESET HOUSE BILL 908. ON APRIL 7, 2025, THE SENATE FURTHER CONSIDERED AND PASSED HOUSE BILL 908.