FHFA rescinds controversial DTI LLPA

Did you hear the exciting news? The Federal Housing Finance Agency (FHFA) announced that it would rescind a controversial loan-level pricing adjustment (LLPA) for conventional borrowers with debt-to-income (DTI) levels at or above 40%.

The FHFA, which regulates Fannie Mae and Freddie Mac, had previously delayed implementation of the DTI LLPA until August. With its rescission, it will no longer go into effect.