Hike in payments for good-credit homebuyers to subsidize high-risk mortgages

[Anonymous]

Just what the market needed, another reason not to sell your home and get a new mortgage.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I think this article does a better job: https://nypost.com/2023/04/16/how-the-us-is-subsidizing-high-risk-homebuyers-at-the-cost-of-those-with-good-credit/

and you can see the fee table here:

Am I reading this correctly, i.e. that as you go from 80-85% LTV to 85-90%, 90-85% and >95% you pay less risk premium (percentage wise)?

well it’s not “risk premium” now is it? It’s a fee discount very high LTV loans get, presumably because they are mostly low income borrowers taking advantage of low downpayment products (and also paying MI).

[Anonymous]

Communism

[Anonymous]

Anonymous wrote:Communism

more like socialism

[Anonymous]

Anonymous wrote:I... don't understand the policy reason behind this?

I had mediocre credit (600 score) when we bought our current home and we wound up with a higher rate as a result. We also only had 10% down, which also impacted our rate. But I've worked incredibly hard for almost 15 years to improve my credit and sock away money, plus we've never missed a mortgage payment (including all our PMI payments since we were putting down less than 20%), and you're saying that because I now have a 800+ credit score and have worked diligently for two decades in order to save money and build equity, I now have to pay more money in order to help people who are now in the exact same situation I was in 15 years ago?

I don't understand. I did exactly what I was told I needed to do. Why am I the one being asked to help?

So far, you have two right wing sources reporting this as a horrific charge to hardworking people while those with lower credit scores get off scot free. And their sources (at least the NY Post) are people in the mortgage banking industry. Shocker.

In reality. admitted in the last paragraph or so of the article, it's a balancing exercise and buyers with lower credit scores will still pay higher fees, just not as high as before.

"Overall, lower-credit buyers will still pay more in LLPA fees than high-credit buyers – but the latest changes will close the gap.

The official said the LLPA changes will result in an average price hike of just three to four basis points, or 0.03% to 0.04%, across the spectrum of mortgage recipients – the equivalent of a few dollars per month."

[Anonymous]

Anonymous wrote:I... don't understand the policy reason behind this?

I had mediocre credit (600 score) when we bought our current home and we wound up with a higher rate as a result. We also only had 10% down, which also impacted our rate. But I've worked incredibly hard for almost 15 years to improve my credit and sock away money, plus we've never missed a mortgage payment (including all our PMI payments since we were putting down less than 20%), and you're saying that because I now have a 800+ credit score and have worked diligently for two decades in order to save money and build equity, I now have to pay more money in order to help people who are now in the exact same situation I was in 15 years ago?

I don't understand. I did exactly what I was told I needed to do. Why am I the one being asked to help?

You don't have to pay anything extra under your current loan, so you aren't being asked to do anything.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I... don't understand the policy reason behind this?

I had mediocre credit (600 score) when we bought our current home and we wound up with a higher rate as a result. We also only had 10% down, which also impacted our rate. But I've worked incredibly hard for almost 15 years to improve my credit and sock away money, plus we've never missed a mortgage payment (including all our PMI payments since we were putting down less than 20%), and you're saying that because I now have a 800+ credit score and have worked diligently for two decades in order to save money and build equity, I now have to pay more money in order to help people who are now in the exact same situation I was in 15 years ago?

I don't understand. I did exactly what I was told I needed to do. Why am I the one being asked to help?

So far, you have two right wing sources reporting this as a horrific charge to hardworking people while those with lower credit scores get off scot free. And their sources (at least the NY Post) are people in the mortgage banking industry. Shocker.

In reality. admitted in the last paragraph or so of the article, it's a balancing exercise and buyers with lower credit scores will still pay higher fees, just not as high as before.

"Overall, lower-credit buyers will still pay more in LLPA fees than high-credit buyers – but the latest changes will close the gap.

The official said the LLPA changes will result in an average price hike of just three to four basis points, or 0.03% to 0.04%, across the spectrum of mortgage recipients – the equivalent of a few dollars per month."

Whether you like the source or not, facts are facts.

[Anonymous]

Anonymous wrote:I... don't understand the policy reason behind this?

I had mediocre credit (600 score) when we bought our current home and we wound up with a higher rate as a result. We also only had 10% down, which also impacted our rate. But I've worked incredibly hard for almost 15 years to improve my credit and sock away money, plus we've never missed a mortgage payment (including all our PMI payments since we were putting down less than 20%), and you're saying that because I now have a 800+ credit score and have worked diligently for two decades in order to save money and build equity, I now have to pay more money in order to help people who are now in the exact same situation I was in 15 years ago?

I don't understand. I did exactly what I was told I needed to do. Why am I the one being asked to help?

You've nailed. Just like those who diligently paid off their student loan debt.
(I took on a second job on nights and weekends to help supplement those early year paychecks to cover all my expenses, including at 10-year student loan for undergraduate studies at a state school).

[Anonymous]

It is better for everyone when you spread the wealth around apparently.

[Anonymous]

Anonymous wrote:Excuse me while I go tank my credit

You do know if your credit is worse your fees are still higher, right.

Before the fee for worse credit was 4% now it’s 2% where good credit went from .25% to 1%.

Do you understand?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I... don't understand the policy reason behind this?

I had mediocre credit (600 score) when we bought our current home and we wound up with a higher rate as a result. We also only had 10% down, which also impacted our rate. But I've worked incredibly hard for almost 15 years to improve my credit and sock away money, plus we've never missed a mortgage payment (including all our PMI payments since we were putting down less than 20%), and you're saying that because I now have a 800+ credit score and have worked diligently for two decades in order to save money and build equity, I now have to pay more money in order to help people who are now in the exact same situation I was in 15 years ago?

I don't understand. I did exactly what I was told I needed to do. Why am I the one being asked to help?

You've nailed. Just like those who diligently paid off their student loan debt.
(I took on a second job on nights and weekends to help supplement those early year paychecks to cover all my expenses, including at 10-year student loan for undergraduate studies at a state school).

+1, exactly!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I... don't understand the policy reason behind this?

I had mediocre credit (600 score) when we bought our current home and we wound up with a higher rate as a result. We also only had 10% down, which also impacted our rate. But I've worked incredibly hard for almost 15 years to improve my credit and sock away money, plus we've never missed a mortgage payment (including all our PMI payments since we were putting down less than 20%), and you're saying that because I now have a 800+ credit score and have worked diligently for two decades in order to save money and build equity, I now have to pay more money in order to help people who are now in the exact same situation I was in 15 years ago?

I don't understand. I did exactly what I was told I needed to do. Why am I the one being asked to help?

You've nailed. Just like those who diligently paid off their student loan debt.
(I took on a second job on nights and weekends to help supplement those early year paychecks to cover all my expenses, including at 10-year student loan for undergraduate studies at a state school).

+1, exactly!

You don’t understand that your fee is not high than the fee for bad credit.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I... don't understand the policy reason behind this?

I had mediocre credit (600 score) when we bought our current home and we wound up with a higher rate as a result. We also only had 10% down, which also impacted our rate. But I've worked incredibly hard for almost 15 years to improve my credit and sock away money, plus we've never missed a mortgage payment (including all our PMI payments since we were putting down less than 20%), and you're saying that because I now have a 800+ credit score and have worked diligently for two decades in order to save money and build equity, I now have to pay more money in order to help people who are now in the exact same situation I was in 15 years ago?

I don't understand. I did exactly what I was told I needed to do. Why am I the one being asked to help?

You've nailed. Just like those who diligently paid off their student loan debt.
(I took on a second job on nights and weekends to help supplement those early year paychecks to cover all my expenses, including at 10-year student loan for undergraduate studies at a state school).

THIS!!!

[Anonymous]

Anonymous wrote:

Anonymous wrote:Excuse me while I go tank my credit

You do know if your credit is worse your fees are still higher, right.

Before the fee for worse credit was 4% now it’s 2% where good credit went from .25% to 1%.

Do you understand?

Some nobody came back to Carmen after they realize they were being idiots and fell for a click bait?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Excuse me while I go tank my credit

You do know if your credit is worse your fees are still higher, right.

Before the fee for worse credit was 4% now it’s 2% where good credit went from .25% to 1%.

Do you understand?

Some nobody came back to Carmen after they realize they were being idiots and fell for a click bait?

Still wrong.