FHFA and GSEs Elimination of Upfront Fees
FHFA and GSEs Elimination of Upfront Fees

The FHFA has announced that GSE upfront fees will no longer apply to HFA Loans and other Affordable Mortgages 

To assist low to moderate-income home buyers, Fannie Mae and Freddie Mac have announced that they will eliminate upfront fees for single-family mortgage loans. These products include Fannie Mae HFA Preferred and Freddie Mac HFA Advantage loans. 

Until now, borrowers whose AMI was below 100% but at 80% or greater had to pay an additional fee to use these products.  This made these products more difficult for first-time homeowners to qualify for and acquire these products, in addition to the fact that they did not have the charter-level mortgage insurance that individuals under 80% of AMI had. According to the FHFA, nearly 20% of home buyers served by the GSEs will benefit from the new policy.  The FHFA anticipates that by doing away with the upfront fees, the GSEs will be better equipped to support underserved people, providing sustainable homeownership opportunities, and boosting equity in the housing finance market. 

Although there has yet to be a specific date set for implementing these modifications, the intention is to have them take effect as soon as possible. Thanks to their action, the FHFA, Fannie Mae, and Freddie Mac will allow HFAs to help more working families achieve their dream of homeownership. 

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by | October 24, 2022

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