Fannie Mae Announces Updates to Loan-Level Price Adjustments

To promote sustainable and equitable access to affordable housing, on Oct. 24, 2022, FHFA announced targeted changes to the GSEs' pricing by eliminating upfront fees for certain borrowers and affordable mortgage products. FHFA also announced targeted increases to the upfront fees for some cash-out refinance loans. Today, Fannie Mae published Lender Letter LL-2022-05, Updates to Loan-level Price Adjustments (LLPAs), providing details on the implementation of the changes FHFA directed us to make to our LLPAs.

All LLPAs will be waived for the transactions as described in Lender Letter LL-2022-05. The waiver of LLPAs will be effective for all whole loans purchased ("Purchase Ready" status in Loan Delivery) on or after Dec. 1, 2022, and for loans delivered on and after Dec. 1, 2022, into MBS pools with issue dates on or after Dec. 1, 2022. In addition, the letter describes the LLPAs that will apply to cash-out refinance transactions when they become effective in 2023.

For questions, please contact the Fannie Mae Investor Help Line at 1-800-232-6643, Option 3 or by e-mail.