In the December Lender Update, some positive changes to our Step Up Program were announced. One of those changes covered lender compensation. That announcement can be found at https://conta.cc/2IO5fDv.
Effective immediately, AHFA is removing the maximum fee cap of 3.50% for customary, reasonable, and discretionary fees lenders may earn on Step Up loans.
Step Up loans must still pass points and fees tests, and not be considered high-cost under Section 32 of Regulation Z Home Ownership and Equity Protection Act of 1994 (HOEPA) in order to be eligible for purchase.