FHFA rescinds upfront fees based on debt-to-income ratio

May 12, 2023

The Federal Housing Finance Agency rescinded its previously announced upfront fees for certain borrowers with a debt-to-income ratio above 40%.

Details: The FHFA announced the new upfront fee in January before announcing in March that it would delay implementation. In its latest announcement, the agency said it has received feedback about the challenges of implementing the DTI ratio-based fee and said it will release details on an upcoming request for input on the single-family guarantee fee pricing framework “shortly.‚Äč”

ICBA View: ICBA has expressed concerns that the DTI ratio-based fee would result in operational challenges for community banks during the loan disclosure process. It continues to advocate pricing that adequately reflects the credit risk of borrowers and the counterparty risk of seller-servicers and that maintains the safety and soundness of the enterprises.