Discover how Propel™ streamlines DSCR loan production. Generate compliant DSCR documentation nationwide, close faster, and scale investor lending with seamless integration and compliance-first automation.
On March 15, 2023, the Federal Housing Finance Agency (FHFA) announced a delay in the implementation of new upfront fees imposed on Fannie Mae and Freddie Mac borrowers with higher debt-to-income ratios. The FHFA originally announced the new upfront fee framework in January 2023 for certain borrowers with a DTI ratio above 40%, which was to go into effect on May 1, 2023. Following industry pushback, the FHFA has decided to delay the implementation of the DTI ratio-based fee until August 1, 2023.
In addition to the delayed effective date of the upfront fee, the FHFA also indicated that lenders will not be subject to post-purchase price adjustments related to the DTI ratio-based fee for loans acquired by Fannie Mae or Freddie Mac between August 1, 2023, and December 31, 2023.
A link to the FHFA announcement can be found here:
FHFA Director Sandra L. Thompson’s Statement on Upfront Fees Based on Certain Borrowers’ Debt-To-Income (DTI) Ratio
Discover how Propel™ streamlines DSCR loan production. Generate compliant DSCR documentation nationwide, close faster, and scale investor lending with seamless integration and compliance-first automation.
Find out why a top-ten mortgage lender with a proprietary loan origination system (LOS) needed to convert from a legacy document platform.
Learn about the changes of state consumer protection and the responsibility of financial services institutions to pursue operational excellence and a culture of compliance.