The mortgage industry received some welcome good news last week that we want you to be aware of. 

The FHFA (Federal Housing Finance Authority) announced that they are eliminating upfront fees tied to the client’s DTI Ratio (Debt To Income) for conventional loans, which are backed by Fannie Mae and Freddie Mac. Conventional loans have always had LLPAs (loan level price adjustments), affecting the interest rate being offered based on specific parameters such as FICO score and down payment.

With the rise in home prices, many consumers have a higher DTI Ratio due to the increase in monthly mortgage payment. In an effort to hedge against risk, the agencies were also charging a higher premium on rates due to this. It is great news that they listened to our industry’s complaints about how unfair this is and removed the ruling. 

Our priority is always to ensure you are current on industry changes. This will help many consumers with their “home purchasing power.” 

Please get in touch with us if you are considering a new home loan; we can help strategize your options.