Loan-level price adjustments for low-income and first-time borrowers and for loans that meet duty-to-serve requirements will be a thing of the past on Dec. 2.
The average g-fee charged on single-family loans in 2021 rose from 54 basis points to 56 bps. Much of the increase can be traced to 15-year fixed-rate refinances, which were subject to an extra adverse market fee.
By some estimates, the enterprises will have to increase guarantee fees by about 3 basis points to offset the lost revenue from FHFA's targeted elimination of LLPAs.
While the FHLBanks tout the utility of the system’s status quo, small independent mortgage bankers push a change that would give nonbanks access to FHLB credit without FHLB membership.
FHFA applies a capital treatment to banks that differs from those used by federal banking regulators. The differences could limit banks’ ability to access Federal Home Loan Bank advances.