themortgagellm™LLPA on a 720 FICO / 80% LTV Fannie purchase loan, June 2019
“What upfront LLPA did Fannie Mae charge on a $300,000 purchase loan, owner-occupied single-family, FICO 720, LTV 80%, fixed-rate, originated June 2019?”
Response
For your loan profile — Fannie Mae purchase, owner-occupied single-family, 720 FICO, 80% LTV, $300,000, fixed-rate, originated June 2019 — the applicable LLPA grid is the Fannie LLPA Matrix dated 07-25-2017, which was in force from 2017-07-25 through 2022-03-31.
Walking the matrix cell-by-cell:
| Component | Value | Notes |
|---|---|---|
| Base grid (Purchase, FICO 720-739, LTV 75.01-80.00%) | 0.750% | Acquisition-fee LLPA |
| Adjustable-rate adder | 0.000% | Not an ARM |
| Investment property / Second home | 0.000% | Owner-occupied primary residence |
| Condo / Manufactured home | 0.000% | Single-family |
| 2-4 unit property | 0.000% | Single unit |
| High-balance | 0.000% | $300K is below 2019 conforming limit |
| Subordinate financing (CLTV > LTV) | 0.000% | Assumed no junior lien |
| Total LLPA | 0.750% | = 75 basis points |
Dollar amount: 0.750% × $300,000 = $2,250 upfront fee at acquisition.
Operational meaning. LLPAs are charged to the lender at GSE acquisition and are universally passed through to the borrower — either as cash at closing (uncommon in retail), or capitalized into the note rate. At 2019 rate sensitivities, 75 bps of LLPA typically translated to roughly 20-25 bps of note-rate premium compared to a no-LLPA same-borrower profile.
Where the LLPA came from. The 720-739 FICO band at 75-80% LTV is the “bend point” in the 2017 Fannie grid — the cell where pricing transitions from minimal (0-25 bps for higher-FICO borrowers) to meaningful (50-75 bps) as a small risk-pricing premium for borrowers near the 80% LTV / 720 FICO boundary. The pricing was unchanged from this 2017 grid through April 1, 2022 (Fannie LL-2022-01 then revised the high-balance and second-home rows). The base FICO × LTV cells didn’t change again until the May 2023 redesign.
If the same loan were originated today (May 2026):
- Under the current May 2023 redesigned grid, a 720-739 FICO / 75-80% LTV Fannie purchase loan would pay 1.250% = 125 bps = $3,750 on the same $300K loan — a substantial increase versus the 2019 vintage.
- The redesign moved high-FICO pricing UP in mid-LTV cells while reducing low-FICO pricing — an explicit cross-subsidy under FHFA’s aligned pricing framework.
Reference: Fannie LLPA Matrix dated 07-25-2017 (SEL-2017-06), in force through 2022-03-31. Identical cell values applied to Freddie Super Conforming / Mortgages with Indicator Score under Bulletin 2021-29 for the same window (FHFA aligns the GSEs).