Loan Level Price Adjustment Fee CANCELED
By Shaneice Brown
Say goodbye to hidden fees and hello to more savings- LLPA fee cancellation is the game-changer you never knew you needed in your mortgage journey!
The Federal Housing Finance Agency (FHFA) recently announced the cancellation of the planned increase in Loan-Level Price Adjustment (LLPA) fees that were set to take effect on August 1st, 2021. This decision was made in response to the ongoing COVID-19 pandemic and its impact on the housing market.
LLPA fees are fees charged by Fannie Mae and Freddie Mac to lenders based on certain risk factors associated with the loans they sell to the government-sponsored entities. These fees are then passed on to borrowers in the form of higher interest rates or upfront fees.
The planned LLPA fee increase was initially announced in late 2020 and was set to affect borrowers with lower credit scores and higher loan-to-value ratios. However, the FHFA's recent decision to cancel the increase provides some relief to borrowers who might have been impacted by the additional fees.
The FHFA's decision to cancel the LLPA fee increase is just one of many steps that federal agencies have taken to support homeowners and renters during the ongoing pandemic. These measures include forbearance options for homeowners with federally backed mortgages and rental assistance programs for renters who are struggling to make ends meet.
Overall, the cancellation of the LLPA fee increase is good news for borrowers who might have been impacted by the additional fees. However, it's important to continue monitoring the housing market and the ongoing COVID-19 pandemic to understand how these factors might impact future policy decisions.