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Late last year Fannie Mae and Freddie Mac went to a risk based pricing model which means factors such as credit score and loan-to-value affect the final rate. I had an interesting discussion with David Morgan, president of the Batesville branch of Guaranty Bank and Trust, about risk based and competition driven pricing. David pointed out that recently we have seen large retail bank competition for deposits drive up CD and Money Market rates but that this practice cannot last due to the high cost of that type of capital. Eventually the large banks will have to reign in their special … (0 comments)
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Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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