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74 74 74 INVESTMENT GOVERNMENT PROPERTY PRESERVATION Journal GSEs UPDATE SINGLE-FAMILY PRICING FRAMEWORK e Federal Housing Finance Agency (FHFA) has announced further changes to Fannie Mae's and Freddie Mac's sin- gle-family pricing framework by introduc- ing redesigned and recalibrated upfront fee matrices for purchase, rate-term refinance, and cash-out refinance loans. "ese changes to upfront fees will strengthen the safety and soundness of the Enterprises by enhancing their ability to improve their capital position over time," said FHFA Director Sandra L. ompson. "By locking in the upfront fee eliminations announced last October, FHFA is taking another step to ensure that the Enterprises advance their mission of facilitating equi- table and sustainable access to homeown- ership." e priorities outlined in the 2022 and 2023 Scorecards for the GSEs include developing a pricing framework to main- tain support for single-family purchase borrowers limited by wealth or income, while also ensuring a level playing field for large and small sellers, fostering capital accumulation, and achieving commercially viable returns on capital. "FHFA's holistic review of the GSEs' up-front pricing framework has led to extensive reworking of the grids, and it will take some time to assess the full impact on borrowers and the market," noted Robert D. Broeksmit, CMB, President and CEO of the Mortgage Bankers Association (MBA). "Our initial review indicates that the new framework results in a modest net increase in overall pricing, which is a con- cern given ongoing affordability challenges and the higher interest rate environment." e updated pricing changes broadly impact purchase and rate-term refinance loans and build on upfront fee changes announced by FHFA in January and October 2022, which have been integrated into the new grids. e new fee matrices consist of three base grids by loan purpose for purchase, rate-term refinance, and cash-out refinance loans—recalibrated to new credit score and loan-to-value ratio categories—along with associated loan attributes for each. "With the peak homebuying season coinciding with these changes, FHFA should consider additional program changes to improve affordability, including raising the area median income threshold for the GSEs' low down payment prod- ucts," added Broeksmit. "is move would expand eligibility for borrowers who can meet the monthly obligation of a mort- gage payment but do not have significant savings to make a large down payment." e updated fees will take effect for deliveries and acquisitions beginning May 1, 2023, to minimize the potential for market or pipeline disruption. "Overall, FHFA's review of upfront pricing in the conventional mortgage market will have a positive impact and result in savings and cost reductions for many low-down-payment borrowers served by private mortgage insurance," said the U.S. Mortgage Insurers (USMI) in a statement. "USMI applauds FHFA and Director ompson for taking a measured and prudent approach to identifying areas where upfront costs could be adjusted, and for many reduced while maintaining a commitment to strong risk management." HUD MAKES NEARLY $570M AVAILABLE FOR HOUSING- RELATED HAZARDS e U.S. Department of Housing & Urban Devel- opment (HUD) has announced two historic Notices of Funding Opportunities (NOFOs) that will make homes healthier and safer for low-income families. With this investment, since 1993, HUD has made more than $2.7 billion available to protect children, families, and individuals from exposure to lead and other hazards in their homes. "Everyone in this country deserves to feel safe and healthy in their homes," said HUD Secretary Marcia L. Fudge. "We are proud to continue fulfilling commitments made under the Biden-Harris Administration's Lead Pipe and Paint Action Plan, including the new funding opportunities we have announced today. ese efforts will protect children, babies, and families from lead exposure, which can be detrimental at even low levels, and other home health hazards." e first NOFO provides more than $403 million in grants to state and local governments for improving health and safety in privately-owned older (pre-1978) homes of low-income families under HUD's Lead Hazard Reduc- tion Grant Program–one of the largest health and safety investments to date for privately-owned housing. ese funds will allow for evaluating and mitigating threats from lead-based paint hazards, with almost $10 million from HUD's Healthy Homes Supplemental funding supporting grantees' controlling additional housing-relat- ed health and safety hazards in those homes. e second funding notice provides $165 million in grants to Public Housing Agencies (PHAs) for improving health and safety in public housing. e grants repre- sent the combination of the Housing-related Hazards Capital Fund and the Lead-Based Paint Capital Fund (HRHLBP) Programs and are the largest health and safety grant investment to date for public housing. is funding is available for evaluating and mitigating threats to public housing residents, such as lead-based paint, car- bon monoxide, mold, radon, fire, and asbestos. is newly combined grant program (HRHLBP) has the added benefits of greater efficiency and timeliness for the PHAs and their public housing residents. State and local governments have until March 14, 2023, to apply for the $403 million Lead Hazard Reduc- tion NOFO; PHAs have until April 13, 2023, to apply for the $165 million HRHLBP NOFO, both, through Grants.gov. HUD encourages eligible applicants to apply and has made this funding available earlier in the fiscal year with more time for applicants to apply in order to facilitate a diverse set of applications.