U.S. Mortgage Index

Loan-level price adjustment

Also called LLPA

Definition

A loan-level price adjustment, or LLPA, is a GSE pricing adjustment that can change the cost of delivering a conventional loan based on loan and borrower features. It is a GSE pricing mechanism, not a consumer fee line with one national amount.

In plain English

On many conventional loans sold to Fannie Mae, risk features can change the price the GSE pays or the cost the lender builds into the rate. Those adjustments are LLPAs. Current grids change. This page names the mechanism. It does not reprint a matrix.

Technical definition

Fannie Mae’s official LLPA matrix identity page is PRIMARY. Current adjustment values are omitted.

Why it matters

A higher rate on a conventional loan is not always a credit-score story. LLPAs are one GSE pricing layer.

Sources reviewed

Important note

Define the pricing mechanism. Do not publish current LLPA values.