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Federal Housing Finance Agency (FHFA) Director Bill Pulte said on social media Wednesday that his agency is reviewing the loan-level price adjustment (LLPA) matrix — the fees charged on conventional loans to account for risk.
Pulte said the review is being led by Barry Habib, the founder and CEO of MBS Highway and a well-known mortgage analyst who joined Fannie Mae’s board of directors in July.
“Barry Habib is great and is working hard to present me options to fix LLPAs (a/k/a PRICING!!!!) and bring some relief to HOME OWNERS AND HOME BUYERS in President Trump’s America! The days of Biden need to be gone!” Pulte said in a post on X.
The Community Home Lenders of America (CHLA) issued a statement of support for the move.
“CHLA is thrilled that Director Pulte is focused on mortgage fee surcharges — AKA LLPAs. Homeownership affordability for younger families is a huge challenge, and relief from excessive LLPAs could have a powerful impact in boosting homeownership levels,” the statement read.
Pete Mills, senior vice president of residential policy and strategic industry engagement at the Mortgage Bankers Association, issued a statement in which he said that “MBA recommends that any changes to LLPAs should lower the cost of credit for middle-income homebuyers and for homeowners wanting to do rate and term refinances.”
LLPAs are either paid upfront or baked into the interest rate. They vary based on factors including borrower credit score, down payment and property type.
The Biden administration proposed to revamp the LLPA matrix in 2023, permanently reducing or eliminating fees for first-time homebuyers and low- to moderate-income borrowers. The changes also included fees for borrowers with lower credit scores and higher down payments.
But the revisions increased fees for some borrowers with higher credit scores and introduced a controversial new LLPA tied to a debt-to-income ratio above 40%. Following pushback from state governments and industry trade groups — which argued the changes penalized responsible borrowers — the DTI portion was ultimately rolled back.
LLPAs apply only to conventional mortgages. Government-backed loans through the Federal Housing Administration, Department of Veterans Affairs and Department of Agriculture do not carry these fees, although some lenders apply their own pricing adjustments.
Pulte also posted this week that the Trump administration is “opportunistically evaluating” a stock offering for Fannie Mae and Freddie Mac, potentially as soon as the end of 2025. Separately, he said he will donate his federal salary of $183,100 to wounded veterans.
