Mortgage company rates are not controlled by the govt. Maybe FHA and VA loans but not conventional.
Many mortgage lenders sell their loans to Fannie Mae.
The loans bought by Fannie Mae, have to be structured to meet the standards of Fannie Mae.
So there will be pressures in the mortgage market, to structure the loans with these fees and rates, to meet these absurd criteria being set down by the Biden administration.
Many mortgage lenders want to sell their loans, so that they have more money to in turn, make more mortgage loans. It’s just the way the mortgage business works.
And a major buyer of mortgage loans, is Fannie Mae.
As I understand it, it’s a change to Fannie Mae/Freddie Mac “Loan-Level Price Adjustment Matrix” used by almost all lenders. Any lender who wants the option to sell their loan to Fannie/Freddie must structure the loan in accordance with their guidelines/rules. FNMA/FHLMC own about 2/3’s of all mortgages and is the primary purchaser of mortgages from lenders, so no lender wants to be stuck with a loan they can’t sell.