FHFA rescinds ABA-opposed DTI ratio-based fee

Following advocacy from the American Bankers Association noting the operational challenges associated with it, the Federal Housing Finance Agency today announced that it is rescinding a new debt-to-income ratio-based fee. The upfront fee—announced in January and scheduled to go into effect on Aug. 1—was part of a broader set of changes to the single-family guarantee fee pricing framework and would have applied to certain borrowers with a debt-to-income ratio of above 40%.

Today’s FHFA decision does not address broader changes to loan-level price adjustment fees that took effect May 1 that have generated significant debate on Capitol Hill and in the media.