MBA Statement on FHFA Rescinding DTI-Based LLPAs
WASHINGTON, D.C. (May 10, 2023) – Bob Broeksmit, CMB, President and CEO of the Mortgage Bankers Association (MBA), issued the following statement after today’s Federal Housing Finance Agency (FHFA) announcement to rescind the implementation of DTI-based LLPAs:
“We have strongly opposed FHFA’s planned debt-to-income loan level pricing adjustment since it was announced in January and have led advocacy efforts calling for its removal. The proposed fee was unworkable for lenders and would have confused borrowers and undermined the customer experience. We are pleased that FHFA engaged with industry stakeholders, recognized the negative impacts of the fee, and decided to rescind its implementation.
“MBA urges FHFA to continue its engagement to improve clarity and transparency regarding the GSEs’ pricing framework. We will continue our work with the agency, the GSEs, lawmakers, and the Biden administration on policies and actions that lower costs and advance sustainable access to homeownership while protecting taxpayers.”