Statement of Bob Broeksmit, CMB on FHFA’s delay of implementation of DTI-based LLPAs
WASHINGTON, D.C. (March 15, 2023) — Bob Broeksmit, CMB, President and CEO of the Mortgage Bankers Association (MBA), issued the following statement on FHFA’s delay of implementation of DTI-based LLPAs:
“While we appreciate the delay, we are disappointed that FHFA’s statement did not recognize the need to consider alternatives to using a debt-to-income pricing adjustment. From the beginning, MBA has emphasized to FHFA that DTI-based loan level price adjustments simply are not workable for lenders and borrowers alike. DTI can fluctuate throughout the mortgage application and underwriting process, and FHFA’s new fees will inevitably lead to borrowers’ costs changing between application and closing, requiring multiple redisclosures that will increase compliance costs and confuse borrowers.
“We will use the extra time offered by the change in the effective date to continue working with FHFA to explore alternatives that will not pose undue hardships on borrowers and lenders.”