FHFA rescinds upfront fees based on DTI ratio

The Federal Housing Finance Agency (FHFA) announced this week it has rescinded the upfront fees based on borrowers’ debt-to-income (DTI) ratios acquired by Fannie Mae and Freddie Mac. The FHFA announced in January a new upfront fee for certain borrowers with a DTI above 40%, followed by an announcement in March it would delay implementation.

According to the FHFA, it received feedback from mortgage and other industry participants on challenges implementing the DTI ratio-based fee.

“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." said FHFA Director Sandra Thompson.