To the relief of many, the Federal Housing Finance Agency (FHFA) has canceled its plan to change a mortgage fee for people with certain debt-to-income ratios.

The fee would have been levied on certain borrowers with debt-to-income (DTI) ratios above 40%. DTI is the portion of your pretax monthly income spent on paying recurring debts, including mortgages, rent and credit card balances. This new fee was supposed to go into effect on May 1, with other changes based on credit score and loan size, delayed until Aug. 1 due to industry pushback, and now scrapped as of Wednesday.

“It was clear from the outset that this upfront fee would hurt future mortgage borrowers,” said Warren Davidson, Ohio congressman and chairman of the Subcommittee on Housing and Insurance.

Source: Medora Lee, USA TODAY