Federal Housing Finance Agency (FHFA) officials are touting the benefits of targeted increases to upfront fees for the Enterprises for certain high balance loans and second home loans.
The Enterprises are also known as Fannie Mae and Freddie Mac, outlining high balance loans are classified as mortgages originating in designated areas above the baseline conforming loan limit.
“These targeted pricing changes will allow the Enterprises to better achieve their mission of facilitating equitable and sustainable access to homeownership while improving their regulatory capital position over time,” FHFA Acting Director Sandra L. Thompson said. The action represents another step the agency is taking to strengthen the Enterprises’ safety and soundness while ensuring access to credit for first-time homebuyers and low- and moderate-income borrowers.
The new fees are slated to become active for deliveries and acquisitions on April 1, 2022, as a means of minimizing market and pipeline disruption.
Additionally, existing beneficial pricing treatment of certain programs that include HomeReady, Home Possible, HFA Preferred, and HFA Advantage will not be altered by the new fee structure. First-time homebuyer loans in high-cost areas with incomes at or below 100 percent of area median income will not possess specific high balance upfront fees.