FHFA Rescinds Plan Penalizing Borrowers With High Credit Scores

FHFA Rescinds Plan Penalizing Borrowers With High Credit Scores

The Federal Housing Finance Agency (FHFA) announced the rescission of its proposed loan level pricing adjustment (LLPA), an upfront fee on borrowers with debt-to-income ratios (DTIs) greater than 40%. That fee had been announced on January 19, 2023 and slated for implementation on May 1. Its implementation was then delayed to August 1, but will no longer be implemented.

The other controversial fee change announced by the FHFA in January was an LLPA increase on borrowers with credit scores over 680 and down payments from 5% to 25%. It was announced today that a request for input (RFI) on those fees will be issued and information gathered from industry, consumers, academics, and private market experts.

NAR appreciates these two changes and the RFI will provide an opportunity to clarify many of the false claims that have been repeated in the media and social media over the last two weeks. Check out NAR's official statement.

Source: National Association of Realtors
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