The Federal Housing Finance Agency (FHFA) recently announced that it would repeal a fee of 1.15% imposed on conventional mortgage borrowers with a debt-to-income ratio of 40% or above. This move follows lengthy advocacy from the American Enterprise Institute and other consumer groups who argued that the fee was disproportionately affecting lower-income households who were already struggling under financial hardship.
The agency recognized their duty to find equitable solutions to help Americans have an opportunity to participate in the housing market. The intention to repeal the upfront fee, which applies to both purchase and cash-out refinances, remains in effect and is effective immediately.
The most important elements in the text are:
• FHFA announced the immediate rescinding of the 1.15% upfront fee for those with a debt-to-income (DTI) ratio of 40% or greater
• Fee applied to purchase and cash-out refinances
• Advocacy from American Enterprise Institute and other consumer groups
• Equity goals in helping Americans participate in the housing market
You can read this full article at: https://www.housingwire.com/articles/fhfa-rescinds-controversial-dti-llpa/(subscription required)
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