FHFA Reverses Controversial Fee Changes After Republican Criticism.
Originally Published 2 years ago — by HousingWire
The Federal Housing Finance Agency (FHFA) has rescinded a controversial loan-level pricing adjustment (LLPA) for conventional borrowers with debt-to-income (DTI) levels at or above 40%. The FHFA had previously delayed implementation of the DTI LLPA following complaints from the mortgage industry. The fee was deemed "unworkable" and would result in logistical and compliance nightmares, as well as confusion and mistrust from borrowers. The FHFA also put out a request for information on other new fees, including those imposed on borrowers with higher credit scores and moderate down payments.