May 11th, 2023 8:58 AM by Sam Kader
Good news! As of May 10th 2023, Federal Housing Finance Agency (FHFA) announced that it has rescinded the upfront fees based on borrower's DTI ratios for loans acquired by Fannie Mae and Freddie Mac.
March 10, 2023 - Obtaining a residential loan from either Fannie Mae or Freddie Mac is getting costlier since these Government- Sponsored Enterprise (GSE) announced in early 2023 of Loan Level Pricing Adjustment (LLPA) updates impacting loans when the Debt-To-Income (DTI) ratio is greater than 40% and Loan-To-Value (LTV) is greater than 60% for purchase, rate & term and cash-out transactions. Please refer to FNMA Lender Letter (LL-2023-01) and FNMA pricing here. Even though these LLPA are effective May 1st 2023, most lenders are already incorporating these changes effective in Feb 2023. Some lenders defer through April 5th 2023 but loans must be closed and funded by April 5th 2023.
Adjustments for Purchase Loans:
Adjustments for cash-out refinances:
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