Upcoming Changes to Mortgage Fees and Redistribution Plans

The Federal Housing Finance Agency (FHFA) is changing the loan-level price adjustment (LLPA) fee structure for mortgages starting May 1, 2023. The new structure will lower fees for some borrowers with lower credit scores and increase fees for those with higher credit scores. The National Association of Realtors has criticized the change, while the FHFA has defended it as part of an overhaul to maintain support for purchase borrowers limited by income or wealth. Overall, those with higher credit scores are still paying less than those without strong scores, but the spread between the two types of borrowers is now narrower.