The Federal Housing Finance Agency (FHFA) did a policy about-face and rescinded its recently enacted upfront fees based on borrowers’ debt-to-income (DTI) ratios for home loans acquired by Fannie Mae and Freddie Mac.
The regulator announced in March it would delay implementation of these fees. The FHFA received criticism with the May 1 introduction of the loan level price adjustment (LLPA) fees, which was characterized by opponents of the new policy as penalizing borrowers with good credit and rewarding those with poorer credit.
“I appreciate the feedback FHFA has received from the mortgage industry and other market participants about the challenges of implementing the DTI ratio-based fee,” said FHFA Director Sandra L. Thompson. “To continue this valuable dialogue, FHFA will provide additional transparency on the process for setting the Enterprises’ single-family guarantee fees and will request public input on this issue.”
The regulator also announced it would be issuing a new Request for Input (RFI) on the single-family guarantee fee pricing framework shortly.
Mortgage Bankers Association President and CEO Robert D. Broeksmit welcomed the news from the FHFA, stating the “proposed fee was unworkable for lenders and would have confused borrowers and undermined the customer experience. We are pleased that FHFA engaged with industry stakeholders, recognized the negative impacts of the fee, and decided to rescind its implementation.”
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Thank God. This was a ridiculous idea. People that have worked long and hard to establish good credit were penalized. It’s a part of the “distributing wealth” idea. Move to another country if you want to implement this.
yes..that is what EVERYONE felt..must be a better way to get lower score folks into a home!! The stability that home ownership offers is far-reaching.
I agree completely Sandi, it’s all a part of dumbing down America! Stupid is as stupid does and this was going to be implemented by a taxpayer funded government agency. Who is behind all this insanity?
Sandi is a very smart person!!! Totally agree with her on this issue!
I agree with Sandi
Despite the fact that many of the appointees to different federal agencies are “educated, many are absolutely unqualified in that they are devoid of any significant amount of meaningful experience, which means that they ill equipped to perform the tasks at hand. Ineptitude in means ineptitude out. This is an egregious act, all to the detriment of the American people.
I totally agree.
This new policy went against everything that most people worked hard to attain. Horrible and disgusting and I can only hope it never goes through. Let’s get people to work for what they want and not hand it over.
Thank goodness! Enough of the ‘let’s foot the bills and help those that won’t help themselves’. They can pay their bills on time, reduce their spending and save money just like the rest of us or face the consequences like other people do. Enough of the GIVE AWAY mentality…..how about more of the EARN IT mentality. STOP ENCOURAGING BAD BEHAVIORS.
My feelings exactly! Our know nothing leaders spend more money giving it away to freebie leeches than supporting the people who earn it. The money they waste on the homeless could buy them all their own property. Now thanks to our power hungry elites are breaking our laws aiding and abetting illegals. This action requires spending more money to provide them with all the freebies they desire while hard working, tax payers are having to foot the bill. All the benefits that the legal Americans are denied unless they pay for them.
Does anyone in America ever consider that the best way to get people with poor skills and hence poor earning prospects into a home is four fold:
(1). bring back the manufacturing jobs which provided a means for the vast majority of them to be productive enough to be paid a wage above the cost of thriving. Trump did this by charging a significant tariff on products entering the country. This incentivized manufacturers, who want to avoid this cost and thus retain profit margins & market share, to move their plants to the US. There are many examples, & a good one is Jinco, a Chinese Solar panel manufacturer in Jacksonville FL, which opened the Jax plant to avoid the Trump tariff.
(2). Abolish the income tax & fund the Federal government with a nationwide sales tax of 10 %. As people retain more of their earnings they adopt increased speed & volume of spending. A dollar spent 10 times at 10 % sales tax generates a dollar in tax revenue, but, unlike the dollar sliced off the top of a paycheck thru income tax, it creates employment AND economic activity BEFORE it lands in the tax coffer.
(3). Begin great NATIONAL projects such as a 50 000 kilometer national Magnetic Levitation (MagLev) High Speed (600 km/hr) Train Network,
and/or implement the NAWAPA (North American Water And Power Alliance) pre-drawn (since the 60’s) plan for a network of hydroelectric dams, open flow canals, & closed flow pipes, to integrate the entire North American landmass of Mexico, Canada, and the US into a single hydrological unit,
and/or build 200 Modular (so easily expandable) 5th Generation (so impossible to have a meltdown) Nuclear Fission Plants to put the thousands of tons of nuclear “waste” to good economic use while making electricity too cheap to meter & available to rapidly expanding industry,
and/or begin a nationwide push to build 1 million new bedroom units in various types of housing, but especially 4 story apartments, annually, until demand is met and home prices drop to a cost 3 years average salary
(4). Begin Manhattan Project Style National Crash Programs to develop more powerful rocket propulsion, master Nuclear Fusion, create a moon base and a Space Shuttle type vehicle to get there & back without shedding expensive rocket stages, build an L4 Space Station, and establish a self supporting Mars colony with nuclear fusion engine manufacturing.
You forgot #5. Replace Welfare with Workfare! let’s begin today by changing the behavior and mindset of those that are capable but would rather take from others. This must come from our leaders. The Bible tells us in Thessalonians 3:6-12 Warning Against Idleness –
“Now we command you, brothers, in the name of our Lord Jesus Christ, that you keep away from any brother who is walking in idleness and not in accord with the tradition that you received from us. For you, yourselves know how you ought to imitate us, because we were not idle when we were with you, nor did we eat anyone’s bread without paying for it, but with toil and labor we worked night and day, that we might not be a burden to any of you. It was not because we do not have that right, but to give you in ourselves an example to imitate. For even when we were with you, we would give you this command: If anyone is not willing to work, let him not eat. For we hear that some among you walk in idleness, not busy at work, but busybodies. Now such persons we command and encourage in the Lord Jesus Christ to do their work quietly and to earn their own living.”
Ditto Sandi, 100%
YEA EDMUND. PLEASE CONSIDER RUNNING FOR PRESIDENT!!
Why charge varied fees due to level of credit or dti, seems most reasonable that you either qualify for a mortgage or you don’t..