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FHFA Rescinds Enterprise Upfront Fees Based on DTI Ratio

The Federal Housing Finance Agency (FHFA) has rescinded the upfront fees based on borrowers’ debt-to-income (DTI) ratios for loans acquired by Fannie Mae and Freddie Mac (the Enterprises). FHFA announced in March it would delay implementation in order to engage with industry stakeholders and better understand their concerns.

“I appreciate the feedback FHFA has received from the mortgage industry and other market participants about the challenges of implementing the DTI ratio-based fee,” said Director Sandra L. Thompson. “To continue this valuable dialogue, FHFA will provide additional transparency on the process for setting the Enterprises’ single-family guarantee fees and will request public input on this issue.”

Consistent with the Enterprise Regulatory Capital Framework finalized in 2020, appropriately capitalizing each Enterprise is critical to ensuring that they are well positioned to meet their mandate of providing liquidity and stability to the secondary mortgage market and supporting access to affordable mortgage credit throughout the nation.

Additional details about the upcoming Request for Input (RFI) on the single-family guarantee fee pricing framework will be released shortly.​

Source: FHFA, May 10, 2023. 

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