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