The mortgage industry is in the midst of an important news update, as a new bill has been proposed to potentially affect the way pricing is readjusted. This new bill seeks to limit the jurisdiction of the Federal Housing Finance Agency (FHFA) in adjusting the price of single-family homes, in addition to prohibiting the Loan Level Price Adjustment (LLPA) changes that are based on a borrower’s debt-to-income ratio.

If this bill passes, it could have far-reaching effects on the industry. This could influence the pricing of loans and lead to price shifts in the market, as lenders and other stakeholders adjust their approach, taking into account the new restrictions. This would mean lenders having to rework their strategies for lending, in order to ensure they abide by the restrictions set by the bill.

Key points:
– New bill proposed to influence single-family home pricing and LLPA adjustments
– FHFA adjustments to be restricted and LLPA changes based on DTI prohibited
– Could lead to price shifts in the market and reshaping of lending strategies

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