Index Investing News
Tuesday, October 7, 2025
No Result
View All Result
  • Login
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion
No Result
View All Result
Index Investing News
No Result
View All Result

New Mortgage Fee Won’t Affect Spring Homebuyers After All | Inman

by Index Investing News
March 19, 2023
in Property
Reading Time: 4 mins read
A A
0
Home Property
Share on FacebookShare on Twitter


Industry groups continue to object to a new Fannie and Freddie fee aimed at some riskier borrowers as a burden on lenders and consumers.

In these times, double down — on your skills, on your knowledge, on you. Join us Aug. 8-10 at Inman Connect Las Vegas to lean into the shift and learn from the best. Get your ticket now for the best price.

Fannie Mae and Freddie Mac’s federal regulator says it will wait until after the spring homebuying season is over to implement a new fee aimed at some riskier borrowers who take out loans that might stretch their finances.

That’s welcome news to real estate industry trade groups that objected to the increase, but some would also like to see fees associated with the borrower’s debt-to-income (DTI) ratio done away with altogether.

The new upfront fee targeting borrowers taking out mortgages with debt-to-income ratios exceeding 40 percent was scheduled to take effect on May 1.

But in response to complaints from some lenders that implementing the new fee will pose operational challenges, the Federal Housing Finance Agency (FHFA) announced this week that it’s delaying rollout of the fee to Aug. 1, “to ensure a level playing field for all lenders to have sufficient time to deploy the fee.”

The new DTI ratio-based fee was one aspect of changes announced in January to the pricing matrices that are used to calculate upfront fees, known as loan level price adjustments (LLPAs), for mortgages slated to be sold to Fannie and Freddie.

While the FHFA has ordered Fannie and Freddie to waive upfront fees for first-time homebuyers of limited means, it’s making up at least some of the difference by charging higher fees for some borrowers who are better off — particularly those taking out loans with moderate down payments and higher debt-to-income ratios.

If they don’t qualify for a waiver, most homebuyers whose DTI ratio exceeds 40 percent will be subject to a 0.375 percent upfront fee, adding nearly $1,200 to the cost of taking out a $315,000 loan to buy the median-priced home. The new pricing matrices have also been recalibrated to include new credit score and loan-to-value ratio categories and differentiate between purchase loans, rate-and-term refinancing and cash-out refinancing — changes that are still taking effect May 1.

The National Association of Realtors (NAR) said in January that it supported waiving fees for first-time homebuyers of limited means, but not by raising fees on middle-class buyers.

From the perspective of the Mortgage Bankers Association, loan-level price adjustments based on debt-to-income (DTI) ratio will also present technical challenges for lenders.

Bob Broeksmit

“From the beginning, MBA has emphasized to FHFA that DTI-based loan level price adjustments simply are not workable for lenders and borrowers alike,” MBA CEO Bob Broeksmit said in a statement. “DTI can fluctuate throughout the mortgage application and underwriting process, and FHFA’s new fees will inevitably lead to borrowers’ costs changing between application and closing, requiring multiple redisclosures that will increase compliance costs and confuse borrowers.”

While Broeksmit said MBA members “appreciate the delay” in implementing the new fee, the trade group “will use the extra time offered by the change in the effective date to continue working with FHFA to explore alternatives that will not pose undue hardships on borrowers and lenders.”

An NAR spokesperson said in a statement to Inman Friday, that although the FHFA’s delay “is encouraging … we hope it is followed with further analysis and reconsideration of the impact of this change.”

“The upfront fee on higher DTIs is not only difficult to operationalize, but it also runs counter to the Enterprises’ and agencies’ historical use of compensating factors to offset risk without harming consumers,” NAR said.

The Community Home Lenders of America (CHLA), which represents small and mid-sized community-based mortgage lenders, issued a similar statement, saying the delay will give its members “more time to adjust to the complications created by this DTI pricing differential, and we continue to call on FHFA to reconsider this fee hike.”

Get Inman’s Extra Credit Newsletter delivered right to your inbox. A weekly roundup of all the biggest news in the world of mortgages and closings delivered every Wednesday. Click here to subscribe.

Email Matt Carter





Source link

Tags: AffectfeehomebuyersInmanMortgageSpringwont
ShareTweetShareShare
Previous Post

Oprah’s Favorite Cooling Bedding and Pajamas Are Up to 25% Off Ahead of Spring

Next Post

Roku’s Colin Davis Named Head Of Comedy Development For Sony TV Studios – Deadline

Related Posts

Stonemont Delivers 259 KSF Campus in Orlando

Stonemont Delivers 259 KSF Campus in Orlando

by Index Investing News
October 7, 2025
0

429 Enterprise Heart in Ocoee includes seven Class A services. Picture courtesy of Stonemont Monetary Group Stonemont Monetary Group has...

FICO to straight license credit score scores to mortgage resellers

FICO to straight license credit score scores to mortgage resellers

by Index Investing News
October 3, 2025
0

Truthful Isaac Corp. will now promote credit score scores on to mortgage resellers. By a brand new program, mortgage resellers can...

Gordon Ramsay’s Los Angeles House Focused in ‘Swatting’ Prank That Noticed Police Referred to as to Faux Reviews of Capturing

Gordon Ramsay’s Los Angeles House Focused in ‘Swatting’ Prank That Noticed Police Referred to as to Faux Reviews of Capturing

by Index Investing News
September 24, 2025
0

Superstar chef Gordon Ramsay's Los Angeles dwelling was surrounded by law enforcement officials responding to a prank 911 name that...

Three’s Firm for Two Generations in One New England Home

Three’s Firm for Two Generations in One New England Home

by Index Investing News
September 20, 2025
0

Nina Kelley thought she’d spend the remainder of her life in Westwood, N.J., the place she and her husband lived...

Introducing the Prestigious The Tipple Home

Introducing the Prestigious The Tipple Home

by Index Investing News
September 12, 2025
0

Courtesy of Jaima Giles and Kiley Flint of LIV Sotheby's Worldwide Realty Perched on the high of the celebrated Prospect...

Next Post
Roku’s Colin Davis Named Head Of Comedy Development For Sony TV Studios – Deadline

Roku’s Colin Davis Named Head Of Comedy Development For Sony TV Studios – Deadline

What to know about investing in companies that empower women

What to know about investing in companies that empower women

RECOMMENDED

Bangladesh’s former ruling occasion slams authorities determination to ban all its actions

Bangladesh’s former ruling occasion slams authorities determination to ban all its actions

May 12, 2025
“You Can Only Make So Many Good Ones”

“You Can Only Make So Many Good Ones”

March 22, 2024
Fox “Solid” Strike Contingency, Rob Wade “Thoughts Go Out To Writers” – Deadline

Fox “Solid” Strike Contingency, Rob Wade “Thoughts Go Out To Writers” – Deadline

May 15, 2023
Mt. Gox Suspects Charged: Russian Nationals Indicted by DOJ

Mt. Gox Suspects Charged: Russian Nationals Indicted by DOJ

June 11, 2023
DXP Enterprises: A Stable Lengthy-Time period Purchase With An Intact Bullish Outlook (NASDAQ:DXPE)

DXP Enterprises: A Stable Lengthy-Time period Purchase With An Intact Bullish Outlook (NASDAQ:DXPE)

March 25, 2025
Ferrovial first-half profit more than doubles, helped by US road revenue By Reuters

Ferrovial first-half profit more than doubles, helped by US road revenue By Reuters

July 27, 2023
Why Did Sabrina Carpenter & Barry Keoghan Break Up? – Hollywood Life

Why Did Sabrina Carpenter & Barry Keoghan Break Up? – Hollywood Life

March 7, 2025
Moody’s upgrades score outlook for Israel

Moody’s upgrades score outlook for Israel

April 10, 2022
Index Investing News

Get the latest news and follow the coverage of Investing, World News, Stocks, Market Analysis, Business & Financial News, and more from the top trusted sources.

  • 1717575246.7
  • Browse the latest news about investing and more
  • Contact us
  • Cookie Privacy Policy
  • Disclaimer
  • DMCA
  • Privacy Policy
  • Terms and Conditions
  • xtw18387b488

Copyright © 2022 - Index Investing News.
Index Investing News is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion

Copyright © 2022 - Index Investing News.
Index Investing News is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In