FHFA Rescinds Upfront Fees Based on DTI Ratio

On May 10, following concerns expressed from NAR and other industry organizations, the FHFA announced that it has rescinded its proposed loan level pricing adjustment (LLPA) upfront fees based on borrowers' DTI ratios greater than 40% for loans acquired by Fannie Mae and Freddie Mac. Additionally, the FHFA announced that it will schedule a Request for Input on another controversial proposed fee change, increasing fees on borrowers with credit scores over 680 and down payments from 5% to 24%. To read NAR’s full statement, click here.