Contact: Scott Olson
The Community Home Lenders of America (CHLA) today released this
statement in response to FHFA’s announcement that it was “eliminating
upfront fees for First-time homebuyers at or below 100 percent of area
median income (AMI) in most of the United States and below 120 percent of AMI
in high-cost areas.”
“The Community Home Lenders of America (CHLA) applauds FHFA
Director Thompson for her announcement that the GSEs would be eliminating
upfront fees for certain first time homebuyers.
With skyrocketing mortgage rates and run-ups in home prices in
recent years, homeownership affordability has become extremely challenging – so
this announcement is well conceived and most appreciated.”
In January, CHLA
sent the enclosed letter in response to FHFA’s LLPA increases for so-called
high cost loans. CHLA’s letter said “we
are never happy to see higher GSE fees, but we are open to fee hikes if: (1)
they are part of a broader strategy to keep fees as low as possible for core
loan products (particularly for underserved borrowers.)” Today’s
announcement seems to take that approach.
CHLA’s letter also pointed out that the January LLPAs affected
middle income homebuyers in middle income markets – that were technically
defined as high cost since they exceeded the conventional loan limits. Today’s announcement goes a long way towards addressing
CHLA’s concerns for such homebuyers.
Read the full letter here: Fee Hikes on Second Home and High Balance Loans