Overview of Changes
*Fannie Mae and Freddie Mac announced that starting with loans PURCHASED May 1, 2023, a new LLPA grid will go into effect.
-Lower FICOs, multi units and low LTV investment properties are improving.
-Higher FICOs above 70% LTVs are worsening.
*Ginnie Mae adjustments are not changing.
*The new FNMA and FHLMC LLPA matrices are below
*There are new credit score bands at 760+ and 780+.
*Several changes to 2-4 unit property LLPAs
*BIG increases in fees for many “Cash-Out” loans
*AND the BIG ONE!!! Price adjustment for DTI’s over 40% with LTVs over 60%!!! Work with The Niles Team to make sure your buyers are FULLY approved upfront so that their pricing is solid and doesn't change. Lots of lenders will CHANGE pricing on your clients due to lack of upfront underwriting so make sure your clients are working with a professional, local mortgage team.
Resources
View official changes
https://singlefamily.fanniemae.com/media/9391/display
FHFA Announcement
https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Announces-Updates-to-Enterprises-SF-Pricing-Framework.aspx
Fannie Mae Lender Announcement
https://singlefamily.fanniemae.com/media/33241/display
Freddie Mac Guide Bulletin Announcement
https://guide.freddiemac.com/app/guide/bulletin/2023-1
LLPA Matrix
https://houseloanwysk.com/wp-content/uploads/sites/2/2023/02/LLPA-Matrix-updated-02-01-23.pdf
Freddie Mac Exhibit 19 Credit Fees
https://houseloanwysk.com/wp-content/uploads/sites/2/2023/02/exhibit_19_effective-05.01.2023.pdf