The Federal Housing Finance Agency will delay the implementation of a new debt-to-income ratio-based fee until Aug. 1 to allow additional time for lenders to prepare to deploy it. As part of its effort to overhaul the single-family guarantee fee pricing framework, the agency in January announced the new upfront fee for certain borrowers with a debt-to-income ratio of above 40%, along with redesigned and recalibrated pricing grids for upfront fees.
FHFA also confirmed that lenders will not be subject to post-purchase price adjustments related to this DTI ratio-based fee for loans acquired by the Fannie Mae and Freddie Mac between August 1, 2023, and December 31, 2023, and that this temporary price adjustment exception will not alter any other quality control review decisions by the GSEs.
FHFA’s decision to delay the fee implementation came after engagement with industry stakeholders, including the American Bankers Association. The association will continue to engage with FHFA and the GSEs in the interim period to address additional operational concerns.