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Debt Fee for Borrowers Rescinded

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Debt Fee for Borrowers Rescinded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this week was that the Federal Housing Finance Agency’s (FHFA) rescinded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.”