FHFA Rescinds DTI-Based Upfront Fees

On May 10, 2023, FHFA announced that it has rescinded a controversial DTI-based loan-level price adjustment (LLPA) on loans sold to Fannie Mae and Freddie Mac.  Specifically, this LLPA would have imposed upfront fees on loans to borrowers with DTI ratios over 40%.  In March, FHFA had previously announced that it was delaying implementation of this feature in order to further engage with the mortgage industry regarding implementation concerns over the proposed LLPA.