Federal Issues

NAR Sends Letter to Director of the FHFA Sandra Thompson Regarding the Recent LLPA Changes

May 11, 2023

As you may know, on May 1, 2023 pricing changes went into effect from the Federal Housing Finance Agency (FHFA) to Fannie Mae and Freddie Mac (the Enterprises) to raise upfront fees paid by some homebuyers known as loan level pricing adjustments (LLPAs). While NAR supports the FHFA’s efforts to improve the fee setting processes at the Enterprises and to maintain safety and soundness, the association strongly believes that some of the changes run counter to the Enterprises’ charter duties and should be eliminated.

In the letter NAR:

  • Expressed appreciation for the FHFA's efforts to reform this critical piece of the finance system, and for reducing fees on some borrowers
  • Raised concerns for borrowers facing high rates
  • Points to excess capital and ROE in the fee structure of Fannie Mae and Freddie Mac
  • Urges the FHFA to eliminate the fee increases

READ NAR’s Letter

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