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WASHINGTON (October 24, 2022) – National Association of Realtors® President Leslie Rouda Smith issued the following statement after the Federal Housing Finance Agency (FHFA) announced a reduction in loan-level pricing adjustments that the government sponsored enterprises charge on first-time buyers, low and moderate income buyers and underserved groups and market sectors:
"NAR applauds FHFA for reducing loan-level pricing adjustments for first-time homebuyers, low and moderate income buyers, and a broad swath of homebuyers," said Rouda Smith. "NAR has long advocated for these reductions, but the benefit of reduced fees to homebuyers is even more important today as we confront the highest mortgage rates in almost two decades. Our members believe that this reduction reflects the strength of the GSEs and that supporting the housing market and taxpayers is their top priority. NAR looks forward to continuing to work with FHFA to improve the real estate market for all Americans."
In March 2008 the Enterprises created loan-level pricing adjustments, which are additional fees based on loan-to-value ratios, credit scores, and other risk factors. These charges are passed on to borrowers, typically in the form of higher mortgage rates. The reduction of loan-level pricing adjustments will allow homebuyers to face less of a financial burden when buying a home.
The National Association of Realtors® is America's largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries.
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