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
Learn more about the Goals Module and its key monitoring and reporting features.
Learn about the changes of state consumer protection and the responsibility of financial services institutions to pursue operational excellence and a culture of compliance.
Regulatory and technology experts discuss innovation, CRA reforms, and how single-close construction loans are reenergizing rural America.
