MBA Statement on FHFA Updates to the GSEs’ Pricing Framework

January 19, 2023 Advocacy Press Release Residential


Adam DeSanctis

(202) 557-2727

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Bob Broeksmit, CMB, President and CEO of the Mortgage Bankers Association (MBA), issued the following statement regarding today’s Federal Housing Finance Agency (FHFA) announcement of updates to Fannie Mae’s and Freddie Mac’s pricing framework: 

“FHFA’s holistic review of the GSEs’ up-front pricing framework has led to extensive reworking of the grids, and it will take some time to assess the full impact on borrowers and the market. 

“Our initial review indicates that the new framework results in a modest net increase in overall pricing, which is a concern given ongoing affordability challenges and the higher interest rate environment.

“With the peak homebuying season coinciding with these changes, FHFA should consider additional program changes to improve affordability, including raising the area median income threshold for the GSEs’ low down payment products. This move would expand eligibility for borrowers who can meet the monthly obligation of a mortgage payment but do not have significant savings to make a large down payment.

“We also urge FHFA to be flexible with its May 1, 2023, implementation date should the industry need more time to integrate these updates and the recalibration of the upfront fee matrix into mortgage pricing. 

“MBA will continue to work with FHFA, the GSEs, and the Biden administration and advocate for policies and actions that expand homeownership opportunities for all qualified borrowers.”