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Loan Level Price Adjustments

All articles tagged with #loan level price adjustments

business2 years ago•4 min saved

The Impact of Biden's Mortgage Plan on Home Buyers with Good Credit

The Federal Housing Finance Agency is implementing changes to the pricing structure of Loan Level Price Adjustments, which will go into effect on May 1. The changes have caused controversy, with some arguing that they penalize people with higher credit scores while giving an advantage to those with lower scores. However, a spokesperson for the agency said that the changes take a more "holistic" approach to the pricing structure and that lower credit scores will still result in more upfront fees. The changes will apply to Freddie Mac and Fannie Mae loans.

via KCRA Sacramento|

#business #credit-scores #federal-housing-finance-agency

finance2 years ago•5 min saved

US Subsidizes High-Risk Homebuyers, Penalizes Good Credit Ones.

Fannie Mae and Freddie Mac will change loan-level price adjustments (LLPAs) on May 1, which will affect mortgages originating at private banks nationwide, resulting in pricier monthly mortgage payments for most homebuyers. High-credit buyers with scores ranging from 680 to above 780 will see a spike in their mortgage costs, while buyers with credit scores of 679 or lower will have their fees slashed, resulting in more favorable mortgage rates. The Federal Housing Finance Agency's move is part of a housing affordability push, but experts say the fee changes will hurt high-credit buyers.

via New York Post |

#credit-scores #federal-housing-finance-agency #finance