FHFA to waive some upfront fees and update credit score model
FHFA to waive some upfront fees and update credit score model
Abstract
The Federal Housing Finance Agency announced Monday that it will waive upfront fees for certain borrowers and affordable mortgage products. The agency is also moving to replace the outdated credit score model used by Fannie Mae and Freddie Mac. The transition from Classic FICO to FICO 10T and VantageScore 4.0 will be a lengthy undertaking. The agency expects one in five borrowers to be eligible for these pricing benefits. Borrowers with limited resources for down payments and those in underserved communities will benefit. The move will go into effect. The new pricing framework took effect on April 1, 2022. "There's a lot of work that is going to have to be done," says FHFA Director Sandra Thompson.
