The Federal Housing Finance Agency has announced an overall reduction in loan-level pricing adjustments for first-time buyers, low-income buyers, and underserved groups.
“NAR applauds FHFA for reducing loan-level pricing adjustments for first-time homebuyers, low and moderate income buyers and a broad swath of homebuyers,” said Leslie Rouda Smith, president of the National Association of REALTORS®. “NAR has long advocated for these reductions, but the benefit of reduced fees to homebuyers is even more important today as we confront the highest mortgage rates in almost two decades. Our members believe that this reduction reflects the strength of the GSEs and that supporting the housing market and taxpayers is their top priority. NAR looks forward to continuing to work with FHFA to improve the real estate market for all Americans.”
Additionally, the FHFA announced that they will recognize VantageScore 4.0 credit scores in addition to FICO 10T credit scores.
“NAR commends FHFA for announcing their transition from using Classic FICO to allowing Fannie and Freddie to use newer versions of FICO and Vantage,” said Rouda Smith. “NAR has advocated for the use of newer credit scores for years as a means of fostering competition, innovation and access, and we are pleased that FHFA has taken the first step to making this change. There is a long road ahead to implement this change, but it will ultimately create a more accurate gauge on a buyer’s ability to purchase a home by including alternative credit data.”