Friday, May 12, 2023 / by Classic Realty
Debt Fee for Borrowers Rescinded
REALTORS across the nation, meet at the Nation’s Capital in DC yearly to protect
property owners. THIS week was that yearly visit. One of the accomplishments,
this week was that the Federal Housing Finance Agency’s (FHFA) rescinded
targeted increases to upfront mortgage loan fees. Dave Boyer reported in the
Washington Times on Wednesday, “The Federal Housing Finance Agency reversed
course Wednesday on a plan to impose new mortgage fees based on a borrower’s
debt-to-income ratio…..after hearing an outcry from realtors”
These “Debt fees” targeted homebuyers with high debt compared to their income
level. This would have increased the cost of purchasing for the population that
already faces challenges to home ownership! We are incredibly proud that our
unified voice was heard and the FHFA responded.
Other changes implemented by the FHFA include the elimination of upfront fees
for moderate- to low-income first-time homebuyers as well as the elimination of
fees for borrowers participating in affordable mortgage programs like HomeReady,
Home Possible and HFA Advantage loans.
We aren’t finished, there is still work to be done the REALTOR Political Action
Committee (RPAC) will continue to advocate for property owners. In his article
Wednesday, Dave Boyer also reported that “the agency is keeping another new
unpopular fee that hits some homebuyers who have higher credit scores.” House
Financial Services Committee Chairman, Patrick McHenry said “Congress will now
take action to end this tax on creditworthy borrowers.”
