Fannie Mae Announces Loan Level Price Adjustment for Second Homes

In its Lender Letter LL-2019-04, Fannie Mae has implemented a 25 basis point loan-level price adjustment (LLPA) for loans secured by second homes with LTV ratios greater than 85%.  Any other price adjustments that are otherwise applicable to the particular transaction will still apply.

Fannie Mae will apply the new LLPA to whole loans purchased on or after July 1, 2019, and for loans delivered into MBS pools with issue dates on or after July 1, 2019.  The new LLPA is not applicable to DU Refi Plus™ and Refi Plus™ loans.