The Community Home Lenders of America (CHLA) today commended FHFA Director Sandra Thompson for today’s announcement that FHFA is scrapping the LLPA pricing component for certain Fannie/Freddie loans with debt to income (DTI) over 40%.
“CHLA commends FHFA Director Thompson for her action to scrap the use of DTI in the pricing grid for Fannie Mae and Freddie Mac.” said Scott Olson, CHLA’s Executive Director.
“The GSE pricing grid is a complex balancing of the objectives of access to mortgage credit for underserved borrowers and safety and soundness – and CHLA believes today’s action to end the use of DTI LLPAs will enhance those dual objectives.”
CHLA weighed in with FHFA informally after the DTI LLPA was first announced to express concerns about the DTI LLPA – https://www.communitylender.org/chla-concerns-regarding-change-of-circumstance-coc-rules-fannie-mae-freddie-mac-llpa-pricing-and-the-40-dti-cliff/
Two weeks ago CHLA sent a letter, asking FHFA to scrap the DTI pricing LLPA – https://www.communitylender.org/chla-writes-fhfa-seeking-elimination-of-40-dti-llpa/