All articles tagged with #fhfa
The head of the Federal Housing Finance Agency, William Pulte, has made an unusual and controversial criminal referral accusing Federal Reserve governor Lisa Cook of mortgage fraud, prompting a formal investigation and political disputes, with experts questioning the legitimacy and motives behind the referral.
The article discusses how Donald Trump is using the federal housing data, particularly mortgage records held by the FHFA, as a tool for political targeting, similar to past abuses of the IRS for political purposes. It highlights the lack of confidentiality protections for mortgage data compared to tax returns and calls for legislative reforms to prevent such misuse in the future.
Federal Reserve Board member Lisa Cook has refused to resign despite President Trump calling for her ouster over allegations of mortgage fraud, which she denies and is investigating further. The controversy stems from claims by FHFA Director William Pulte that Cook designated her out-of-state condo as her primary residence shortly after taking a loan on her Michigan home, leading to a criminal referral to the Justice Department.
William J. Pulte, Chairman of the Board of Fannie Mae and Freddie Mac, expressed support for reports that Jerome Powell is considering resigning, believing it would benefit the U.S. economy.
FHFA Director Bill Pulte has called on Congress to investigate Federal Reserve Chair Jerome Powell for alleged political bias, deception, and financial misconduct, including a $2.5 billion scandal, following recent Fed decisions and statements.
The Federal Housing Finance Agency (FHFA) has announced the conforming loan limit (CLL) values for 2025, with the baseline CLL for one-unit properties set at $806,500, marking a 5.2% increase from 2024. This adjustment reflects the rise in average U.S. home prices as reported in the FHFA House Price Index. In high-cost areas, the loan limit can reach up to $1,209,750, which is 150% of the baseline limit. Special provisions apply to Alaska, Hawaii, Guam, and the U.S. Virgin Islands, where the baseline limit is also $1,209,750.
U.S. house price growth slowed significantly in March, with prices rising just 0.1% compared to 1.2% in February, as higher mortgage rates dampened demand. Despite this, year-over-year prices increased by 6.7%, and low housing inventory continues to support price appreciation. Existing home sales fell in March, but prices remain elevated due to limited supply.
The FHFA has canceled its plan to change a mortgage fee for people with certain debt-to-income ratios, which would have been levied on certain borrowers with DTI ratios above 40%. The fee was supposed to go into effect on May 1, with other changes based on credit score and loan size. The cancellation of the fee is a relief for many borrowers, as it would have hurt future mortgage borrowers. However, fee changes based on credit scores and down payment sizes went into effect on May 1, resulting in some people with high credit scores paying more than they would have prior to May 1.
The Federal Housing Finance Agency (FHFA) has withdrawn a proposed debt-to-income ratio fee change for home loan borrowers using Fannie Mae or Freddie Mac financing. The fee hike would have affected borrowers whose debt ratio was above 40%. The FHFA said it would provide additional transparency on the process for setting the Enterprises’ single-family guarantee fees and request public input on the issue. The agency is also facing controversy over its decision to update the fee structure on loan-level pricing fees.
The Federal Housing Finance Agency (FHFA) has cancelled its proposed loan level pricing adjustment (LLPA) upfront fee on borrowers with debt-to-income ratios greater than 40 percent that was slated to go into effect August 1st, following significant urging from the National Association of REALTORS® (NAR). NAR had previously written the FHFA urging it to require factors such as higher credit scores or larger down payments to offset this risk in lieu of higher fees that would only raise the borrower’s risk of default. The FHFA also announced that it will conduct a request for information on other new fees, such as those imposed on borrowers with higher credit scores and moderate down payments.
The Federal Housing Finance Agency (FHFA) has rescinded a controversial loan-level pricing adjustment (LLPA) for conventional borrowers with debt-to-income (DTI) levels at or above 40%. The FHFA had previously delayed implementation of the DTI LLPA following complaints from the mortgage industry. The fee was deemed "unworkable" and would result in logistical and compliance nightmares, as well as confusion and mistrust from borrowers. The FHFA also put out a request for information on other new fees, including those imposed on borrowers with higher credit scores and moderate down payments.
The Federal Housing Finance Agency (FHFA) has clarified that the new mortgage fees will not penalize borrowers with good credit scores, but different borrowers will experience the changes differently. While some borrowers may experience modest increases, others may experience modest decreases. However, mortgage loan officers believe that some high credit score borrowers will see significant increases. The fees collected will be used to decrease costs for borrowers with limited wealth and income.
The Federal Housing Finance Agency has updated its upfront fees for Fannie Mae and Freddie Mac mortgages, which has sparked criticism that borrowers with higher credit scores will subsidize those with lower credit through higher fees. Critics argue that these fees will punish responsible borrowers while encouraging others to act irresponsibly amid worsening affordability issues. However, experts say higher credit scores will still lead to lower payments and the new pricing adjustments are not penalizing borrowers with good credit.
The Federal Housing Finance Agency (FHFA) has altered the loan fees charged to Americans with mortgages from Fannie Mae and Freddie Mac, which provide more than half of all mortgages in the U.S. Critics claim that the changes benefit individuals with lower credit scores at the expense of borrowers with higher credit scores, but proponents suggest that's an incomplete characterization of the situation. The FHFA is raising fees on loans that are less risky so that it can better serve those who need the help. The changes come at a particularly tenuous time for the housing market, with 30-year mortgage rates hovering near a two-decade high.
New mortgage rules from the Biden administration have gone into effect, which could increase fees for borrowers with good credit to offset costs for less qualified buyers. However, experts warn that the plan could lead to unintended consequences and risks similar to the 2008 financial crisis. The plan has been met with pushback from many leaders in the mortgage industry, with experts estimating that borrowers with a credit score above 680 could expect to pay an extra $40 per month on a $400,000 mortgage. The Federal Housing Finance Agency (FHFA) Director Sandra Thompson attempted to alleviate fears over the new rules, saying the new fees will not "represent pure decreases for high-risk borrowers or pure increases for low-risk borrowers."