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FHFA Rescinds LLPA DTI Fees

Published on May 12, 2023

On May 10, the Federal Housing Finance Agency (FHFA) announced that it has rescinded the loan-level pricing adjustment (LLPA) fees for Fannie Mae and Freddie Mac borrowers with a debt-to-income ratio (DTI) of 40% or higher. This decision comes after previous delays in implementation following mortgage industry concerns about the combined impact of this fee and other increases in LLPA fees. In a statement, FHFA Director Sandra Thompson relayed, “To continue this valuable dialogue, FHFA will provide additional transparency on the process for setting the Enterprises’ single-family guarantee fees and will request public input on this issue.”

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