FHFA Will Implement Changes to GSE Pricing Framework

Published on October 28, 2022

On October 24, the Federal Housing Finance Agency (FHFA) announced it will make changes to Fannie Mae and Freddie Mac’s guarantee fee pricing by eliminating upfront fees for certain borrowers and affordable mortgage products. FHFA Director Sandra Thompson stated the latest decision will promote sustainable and equitable access to affordable housing for low-income and underserved communities. The new fee reductions will go into effect as quickly as possible and the FHFA will work with the GSEs to announce an implementation date soon. Additionally, the agency announced it will increase upfront fees on most cash-out refinance loans. The implementation of new fees for cash-out refinance loans is expected to begin February 1, 2023.