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

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:After all the outrage about this, no one wanted to give an update? This got rescinded, right?

https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Announces-Rescission-of-Enterprise-Upfront-Fees-Based-on-Debt-To-Income-Ratio.aspx

wow. how embarassing for FHFA.

How embarrassing that you don't even realize this was just one element of their proposed fee changes. They are getting rid of DTI as a factor in the fee matrix. The proposal would've charged a 0.375% fee if the borrower had greater than a 40% DTI. It was supposed to be charged in order to strengthen the safety and soundness of Fannie Mae. But that is being rescinded. Instead, Fannie will continue to give a break to over-leveraged people (including lots of rich people who like to use lots of debt).

Here's a plain English reading if you can't handle Fannie press releases and FR notices: https://www.ocregister.com/2023/05/10/fhfa-rescinds-controversial-debt-to-ratio-fee-change-for-home-loans/

This is completely separate from the ginned up controversy about marginally lower fees for people with lower credit scores. That is still moving ahead.

Imagine being so dumb and not understanding what you're sharing on the Internet.

FHFA is a hack agency. They already are walking back the LLPA credit scores adjustment, and now this.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:After all the outrage about this, no one wanted to give an update? This got rescinded, right?

https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Announces-Rescission-of-Enterprise-Upfront-Fees-Based-on-Debt-To-Income-Ratio.aspx

wow. how embarassing for FHFA.

How embarrassing that you don't even realize this was just one element of their proposed fee changes. They are getting rid of DTI as a factor in the fee matrix. The proposal would've charged a 0.375% fee if the borrower had greater than a 40% DTI. It was supposed to be charged in order to strengthen the safety and soundness of Fannie Mae. But that is being rescinded. Instead, Fannie will continue to give a break to over-leveraged people (including lots of rich people who like to use lots of debt).

Here's a plain English reading if you can't handle Fannie press releases and FR notices: https://www.ocregister.com/2023/05/10/fhfa-rescinds-controversial-debt-to-ratio-fee-change-for-home-loans/

This is completely separate from the ginned up controversy about marginally lower fees for people with lower credit scores. That is still moving ahead.

Imagine being so dumb and not understanding what you're sharing on the Internet.

FHFA is a hack agency. They already are walking back the LLPA credit scores adjustment, and now this.

Such a “hack” agency that they essentially control the US mortgage market?

Theory: they proposed the DTI stuff knowing there would be such swift industry pushback. They could give the industry a “win” by rescinding the DTI proposal but finalize the credit score stuff. Play chess, not checkers.

If you want a non partisan summary of the proposal, read this post by MND from January:
https://amp.mortgagenewsdaily.com/article/63c989edfe4e549d560316f2

[Anonymous]

This will encourage people to be slow pay on car loans etc so they can get a better deal on their mortgage.

It rewards poor behavior.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Lifelong democrat voter here. This is idiotic, terrible policy, and anti-American. I feel like we live in an Idiocracy.

Can you point to the specific aspect of the policy that you find anti-American?

Not PP, but rewarding bad decisions. Rewarding poor performance.

[Anonymous]

Anonymous wrote:

Anonymous wrote:This is completely and utterly insane.

+1000 This is ridiculous and infuriating!

It rewards bad credit and slow payments.

[Anonymous]

Anonymous wrote:

Anonymous wrote:https://www.newsweek.com/biden-raises-costs-homebuyers-good-credit-help-risky-borrowers-1795700

I’m black with great credit. Will this screw me over? Even though it says this is somehow helping racial disparities?

Yes, a black person with good credit will pay more for a mortgage than a back person with poor credit.

Anyone with good credit, black, brown, or white will pay more for a mortgage than a person with poor credit.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:https://www.newsweek.com/biden-raises-costs-homebuyers-good-credit-help-risky-borrowers-1795700

I’m black with great credit. Will this screw me over? Even though it says this is somehow helping racial disparities?

Yes, a black person with good credit will pay more for a mortgage than a back person with poor credit.

Anyone with good credit, black, brown, or white will pay more for a mortgage than a person with poor credit.

Factually not true at all. Straight up lies.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:https://www.newsweek.com/biden-raises-costs-homebuyers-good-credit-help-risky-borrowers-1795700

I’m black with great credit. Will this screw me over? Even though it says this is somehow helping racial disparities?

Yes, a black person with good credit will pay more for a mortgage than a back person with poor credit.

Anyone with good credit, black, brown, or white will pay more for a mortgage than a person with poor credit.

1. You’re an idiot. And probably a liar too. But I’ll give you a slight benefit of the doubt and assume you’re an idiot.

2. The Fannie/Freddie loans still give those with the best credit scores and highest down payments the best fees. Or even no fees if you have a high credit score and high downpayment.

3. The proposal narrows the spread for fees charged to high credit scoring borrowers and low credit scoring borrowers. Those with high scores still pay the cheapest fees; those with low score still pay the highest fees. But the gap between the two borrowers is now narrower.