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Loan Level Price Adjustments

By
Mortgage and Lending with VanDyk Mortgage

You're Kidding Me Fannie...

Fannie Mae has raised her loan surcharges for fees that are inherent in any conventional loan for the fourth time since April of 2008. These Loan Level Price Adjustments (LLPAs) are assessed based upon certain eligibility or other loan features, such as credit score, loan purpose, occupancy, number of units, product type, etc.

Bear mind, these are all "pre-lender" charges. The whole concept is predicated on risk based pricing. But even if you are a decent risk, you are lining their pockets with these fees.

You are paying Fannie Mae one way or another; either through the percentage tacked on with this adverse market delivery charge or with the compulsory mortgage insurance if you aren't putting enough down. Even a happy FICO can't save you.

You're kidding me Fannie.

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