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In a recent development, the Federal Housing Finance Agency (FHFA) has made an important announcement that will have a significant impact on the mortgage industry. The FHFA has decided to rescind the upfront fees based on borrowers’ Debt-to-Income (DTI) ratios for loans acquired by Fannie Mae and Freddie Mac. This decision comes after careful consideration and engagement with industry stakeholders, highlighting the agency’s commitment to understanding and addressing concerns within the market.


The FHFA initially announced the implementation of upfront fees based on DTI ratios in March. However, it was postponed to allow for a constructive dialogue with industry stakeholders, aiming to gain insights into their apprehensions and challenges regarding the new fee structure. Director Sandra L. Thompson expressed gratitude for the feedback received and emphasized the importance of continued communication. To facilitate this ongoing dialogue, the FHFA plans to provide additional transparency on setting the Enterprises’ single-family guarantee fees and will seek public input on the matter.


The decision aligns with the Enterprise Regulatory Capital Framework established in 2020. It recognizes the critical need to ensure its ability to provide liquidity and stability to the secondary mortgage market. By removing the DTI ratio-based fee, the FHFA aims to support access to affordable mortgage credit nationwide, benefiting potential homebuyers and fostering a healthy housing market.


The FHFA plans to release more information regarding the upcoming Request for Input on the single-family guarantee fee pricing framework in the near future. This RFI will allow industry participants, stakeholders, and the public to share their perspectives on the fee structure and provide valuable input. By actively seeking public engagement, the FHFA aims to make informed decisions that best serve the interests of both the mortgage industry and aspiring homeowners.


The FHFA’s recent decision to rescind the upfront fees based on DTI ratios for loans acquired by Fannie Mae and Freddie Mac marks a significant development in the mortgage industry. This decision reflects the agency’s commitment to engaging with industry stakeholders, addressing concerns, and promoting access to affordable mortgage credit. As the FHFA prepares to solicit public input on the single-family guarantee fee pricing framework, stakeholders have an opportunity to contribute to the ongoing dialogue and shape the future of mortgage lending in the United States. By working together, we can foster a thriving housing market that supports the aspirations of individuals and families across the nation.