llpa: Loan Level Price Adjustments: You'll want to know this. - 11/16/11 01:16 PM
I first wrote about this in February. It significantly raises the rate in certain circumstances, like (a combination of) cash-outs, investment property, low credit score, high LTV. I have recently priced loans where the rates came in at close to 6.00%!  - P
What are LLPAs?In 2007, Fannie Mae introduced "Loan Level Pricing Adjustments" (LLPAs). The concept is basic: For loans with higher risk profiles, there are additional up-front charges to offset potential long-term losses. LLPAs went up April 1st, 2011. Whether paid by the borrower upfront, or factored into a higher rate, it can drastically increase the cost of borrowing. As you read this, just remember this … (0 comments)

llpa: A must read: New risk premiums will drastically increase the cost of borrowing - 01/16/11 06:35 AM
You are not going to like this! Fannie Mae Loan Level Price Adjustments (LLPAs) are going up effective April 1st, 2011, drastically increasing loan pricing. See below. /// There is another Fannie initiative that can increase the cost of borrowing. Borrower credit will can be re-examined prior to close. This can raise the rate - or worse: result in a decline! (I am not making this up). I will write more on this next week. For now impress on your buyers to not to increase their debt, nor apply for credit anywhere during the home buying process! /// Make it a good week folks, and don't forget to send me … (1 comments)