Nov 15, 2022 2022-23
Fannie Mae (FNMA) HFA Preferred Program Update
MFA is pleased to announce exciting pricing changes for all Fannie Mae HFA Preferred loans. Loan level price adjustments (LLPAs) will no longer be charged, except for loans made to borrowers over 80% Area Median Income (AMI) with Charter-minimum MI coverage.
Effective immediately with loans locked on Wednesday, November 16, 2022, the rates for the above and below 80% AMI borrowers will show the same interest rate in order to implement this FNMA change.
Here are the changes to the FNMA HFA Preferred program:
- LLPAs are waived on all HFA Preferred loans, regardless of AMI or first-time homebuyer status.
- Mortgage insurance (MI) requirements continue to apply.
- Loans made to borrowers at or below 80% AMI require Charter-minimum MI coverage.
- Loans made to borrowers above 80% AMI require Standard MI coverage. Charter MI coverage is available to borrowers over 80% AMI with applicable LLPAs.
These updates are part of an ongoing effort to provide support for first-time homebuyers and low to moderate-income borrowers by increasing the affordability of these programs. MFA wants to help our lender partners deliver these benefits to their borrowers.
For the time being, we will require that you continue to reserve loans as Above or Below 80% AMI, based on lender-qualifying income. MFA is committed to developing programs that will reach borrowers across the AMI scale.
We appreciate your understanding and continuing support.
Should you have questions please contact a member of the Homeownership Department at 505.843.6880.
Thank you for participating in MFA programs.