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

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."


Right wing sources? I posted the FHFA links on like post 5. Did you actually read them?
Anonymous
Just dont use fha loans.
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?


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."


Right wing sources? I posted the FHFA links on like post 5. Did you actually read them?


The FHFA link does NOT show that good credit scores are paying higher rates than bad credit scores.

The article was click bait.

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?


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."


Right wing sources? I posted the FHFA links on like post 5. Did you actually read them?


Yes, but judging by the number of people that think borrowers with lower credit scores are somehow advantaged/paying less no one bothered to actually read that. They instead latched onto the framing in the NY Post and obvious right wing rag Washington Times. As was intended.
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?


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."


Right wing sources? I posted the FHFA links on like post 5. Did you actually read them?


The news organizations cited in this thread are not exactly credible so if you are relying on their interpretation of the rules, yeah, you are being hoodwinked.
Anonymous
Yeah, nope, not clicking on two right wing links.
Anonymous
Can someone help me understand this in a neutral, nonpolitical way?

Is this accurate?

The mortgage companies need to raise a certain amount of money through fees. Before, people with lower credit scores were charged nearly all of the money needed. Now, the charges are more even, and the people with higher credit scores will pay a higher percentage than the people with lower credit scores.
Anonymous
Anonymous wrote:It is better for everyone when you spread the wealth around apparently.


Unironically, yes
Anonymous
Lifelong democrat voter here. This is idiotic, terrible policy, and anti-American. I feel like we live in an Idiocracy.
Anonymous
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?
Anonymous
Anonymous wrote:Can someone help me understand this in a neutral, nonpolitical way?

Is this accurate?

The mortgage companies need to raise a certain amount of money through fees. Before, people with lower credit scores were charged nearly all of the money needed. Now, the charges are more even, and the people with higher credit scores will pay a higher percentage than the people with lower credit scores.


No. That is not correct.

First, if you are getting a conventional loan this does not affect you.

If you are getting a FHA loan, there are fees.

People with good credit scores paid insanely low fees, people with bad scores paid insanely high fees. These fees did not relate in any way to actual risk,

People with good credit scores will still pay very low fees perhaps 1% vs .25%, people with lower credit scores will pay reasonable fees, perhaps 2.5% instead of 4%.

People with good credit are still paying lower fees than people with bad credit.

If you have a good credit score you probably don’t need and FHA loan you probably will qualify for a conventional mortgage and this will not affect you.
Anonymous
Anonymous wrote:
Anonymous wrote:Can someone help me understand this in a neutral, nonpolitical way?

Is this accurate?

The mortgage companies need to raise a certain amount of money through fees. Before, people with lower credit scores were charged nearly all of the money needed. Now, the charges are more even, and the people with higher credit scores will pay a higher percentage than the people with lower credit scores.


No. That is not correct.

First, if you are getting a conventional loan this does not affect you.

If you are getting a FHA loan, there are fees.


People with good credit scores paid insanely low fees, people with bad scores paid insanely high fees. These fees did not relate in any way to actual risk,

People with good credit scores will still pay very low fees perhaps 1% vs .25%, people with lower credit scores will pay reasonable fees, perhaps 2.5% instead of 4%.

People with good credit are still paying lower fees than people with bad credit.

If you have a good credit score you probably don’t need and FHA loan you probably will qualify for a conventional mortgage and this will not affect you.


Thank you for that clarification. I could not tell. The latest number I found was that FHA loans are about 10% of the mortgage market. If that is accurate then this is just another manufacture right wing outrage.
Anonymous
You people are a bunch of idiotic rubes. It only impacts certain loans and low credit people still pay more.

communism indeed. dumb@ss3s
Anonymous
Anonymous wrote:
Anonymous wrote:Can someone help me understand this in a neutral, nonpolitical way?

Is this accurate?

The mortgage companies need to raise a certain amount of money through fees. Before, people with lower credit scores were charged nearly all of the money needed. Now, the charges are more even, and the people with higher credit scores will pay a higher percentage than the people with lower credit scores.


No. That is not correct.

First, if you are getting a conventional loan this does not affect you.

If you are getting a FHA loan, there are fees.

People with good credit scores paid insanely low fees, people with bad scores paid insanely high fees. These fees did not relate in any way to actual risk,

People with good credit scores will still pay very low fees perhaps 1% vs .25%, people with lower credit scores will pay reasonable fees, perhaps 2.5% instead of 4%.

People with good credit are still paying lower fees than people with bad credit.

If you have a good credit score you probably don’t need and FHA loan you probably will qualify for a conventional mortgage and this will not affect you.


What are the fees for? To process the loan? To offset to risk of default? If it is for processing, the fee should be proportional to the loan amount. If it is for offset the future defaults, people with higher credit shouldn’t be paying for it.
Anonymous
Who cares? This is DCUM, no one here has an FHA loan. If you have a good credit score and you’re still using an FHA loan you’re doing something wrong.
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