FHFA Cancels Controversial Mortgage Fees for Homebuyers.

The Federal Housing Finance Agency (FHFA) has cancelled its proposed loan level pricing adjustment (LLPA) upfront fee on borrowers with debt-to-income ratios greater than 40 percent that was slated to go into effect August 1st, following significant urging from the National Association of REALTORS® (NAR). NAR had previously written the FHFA urging it to require factors such as higher credit scores or larger down payments to offset this risk in lieu of higher fees that would only raise the borrower’s risk of default. The FHFA also announced that it will conduct a request for information on other new fees, such as those imposed on borrowers with higher credit scores and moderate down payments.