FHFA backed down on granting LLPA better pricing

[Caroline Gerardo]

After the MBA and hundreds of mortgage lenders and consumers complained to their Congressperson the FHFA rescinded its plan to offer a bit better pricing to lower FICO score ranges and debt to income ratios. Though negligible in the terms of what an investor might see in mortgage rates overall...  

https://nationalmortgageprofes...

I saw some posts about this in the past weeks.

MBA fought this. I'm on the MBA Legal Team. I had 200+ people call their Congress-person and call Sandra Thompson. I spent 30 days doing this day and night as this was a recent "plan".

Sometimes the government listens.

[Jamie Jones]

Quote from @Clark Peterson:

Quote from @Nicole Heasley Beitenman:

Unless there was an overnight development or I'm misunderstanding the article, they aren't rescinding the LLPA adjustments based on credit score. They're just rescinding the 40% DTI adjustment.

 Yeah, @Nicole Heasley Beitenman, I was under the same impression - that it was the Fannie/Freddie upfront fee for DTI >40%. Here is an Inman article I saw today on it. 

Yes you are both correct. The other LLPA changes, concerning FICO scores, have not changed since they were implemented on loans being delivered to Fannie & Freddie by May 1 (meaning they hit lenders pricing in March). However, the very controversial DTI > 40% LLPA adjustment has been cancelled, which is great news for the mortgage industry.