FHFA Delays Upfront Fees for High DTI Ratio Borrowers

The Federal Housing Finance Agency (FHFA) announced a three-month delay for implementing upfront fees for borrowers with a debt-to-income (DTI) ratio above 40%. The new effective date is August 1, 2023, due to feedback from mortgage industry stakeholders.

Lenders won't face post-purchase price adjustments for loans acquired by Fannie Mae and Freddie Mac between August 1, 2023, and December 31, 2023, related to this DTI ratio-based fee.

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FHFA Director Sandra L. Thompson’s Statement on Upfront Fees Based on Certain Borrowers’ Debt-To-Income (DTI) Ratio