LLPA
Business & Finance abbreviation · Real Estate & Mortgage
| Stands for | Loan-level price adjustment |
|---|---|
| Categories | Business & Finance |
LLPA stands for Loan-level price adjustment, a real estate & mortgage abbreviation.
Risk-based fee charged by Fannie Mae and Freddie Mac on conventional mortgages according to factors such as credit score, loan-to-value ratio, property type and loan purpose, usually passed to borrowers as a higher rate or points.
Example: The condo and cash-out LLPAs added almost half a point to our rate.
Usage notes
Updated pricing grids introduced in 2023 drew attention when critics claimed borrowers with higher credit scores were subsidizing those with lower ones, a characterization regulators disputed.
Related abbreviations
More real estate & mortgage abbreviations
- HUD-1 – HUD-1 Settlement Statement
- HWF – Hardwood floors
- IDX – Internet Data Exchange
- IO – Interest-only
- JTWROS – Joint tenants with right of survivorship
- LE – Loan Estimate
- LPMI – Lender-paid mortgage insurance
- LR – Living room
- LTV – Loan-to-value ratio
- LVP – Luxury vinyl plank
- MBR – Master bedroom
- MIP – Mortgage insurance premium