FHFA has rescinded the proposed pricing adjustment for Debt-to-Income ratios

Posted by Leslie Kopp & Christi Arndt on Tuesday, May 16th, 2023 at 12:00pm

The Federal Housing Finance Agency has rescinded the proposed pricing adjustments for Debt-to-Income ratios. 

This policy, which was proposed to offset the risks associated with higher DTI ratios, would have resulted in additional costs for borrowers with a higher DTI ratio. However, many industry professionals, including mortgage companies and real estate agents, expressed concern that this policy would restrict access to credit for countless buyers.

After considering and analyzing the potential impact of the pricing adjustment on access to credit, the FHFA made the decision to reverse the policy. This decision was made to ensure that eligible borrowers continue to have access to affordable credit, while maintaining safety and soundness in the mortgage market.

With this decision to rescind the pricing adjustment, more borrowers may be able to qualify for a mortgage, which could help to boost home sales and improve overall market conditions!


1Source: https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Announces-Rescission-of-Enterprise-Upfront-Fees-Based-on-Debt-To-Income-Ratio.aspx

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