Trade groups representing mortgage bankers, financial institutions and Realtors are among two dozen groups calling for the elimination of loan level price adjustments.
In addition to guarantee fees, pricing on loans backed by Fannie Mae and Freddie Mac include LLPAs that are paid at the time the loans are delivered to the two firms.
LLPAs were introduced by the government-sponsored enterprises in February 2008. They are determined by credit scores, loan-to-value ratios and other risk factors.
Industry Groups Call for Elimination of GSE LLPAs