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

Forum Index » Real Estate

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

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]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 This got rescinded, right?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[/quote]

wow. how embarassing for FHFA. [/quote]

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 But that is being rescinded.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.[/quote]

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

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[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics