On June 23, 2023, H.R 3564, The Middle Class Borrower Protection Act of 2023, passed the US House of Representatives with bipartisan support. But the work is NOT finished, and YOUR VOICE is needed to get this much needed legislation through the finish line.
For background, the Biden administration and FHFA have increased costs, substantially, for many home buyers using conventional financing (conventional financing has been used in roughly 80% of financed real estate transactions in the past year). You can read about the changes by clicking here to get more background.
While industry opposition … (18 comments)
fhfa: #Fake News - LLPA Adjustments Were NOT Abandoned
- 05/22/23 05:07 PM
Ok, last blog about the recent changes to LLPAs (loan level pricing adjustments)- I hope. But in the spirit of working to force FHFA to get it right, I'm finding it necessary to highlight the topic again. A LOT of people believe that the May 1 LLPA changes were cancelled, abandoned, or pulled back. They, in fact, were not. The adjustments to conventional loan financing on all conventional loans delivered to Fannie Mae & Freddie Mac (82% of the financed home purchase market nationwide!) as of May 1 are still in effect. The chart below is reflective of pricing adjustments that are live … (17 comments)
Last week I had the pleasure of speaking to ActiveRainers on Tuesday's call, and discussed recent changes to FHFA Loan Level Pricing Adjustments. In that call, I discussed a change that was scheduled to take place in the coming months to pricing based on a borrower's debt-to-income ratio, which would have set a perilous precedent in loan pricing. I asked those on the call to share the info, and be as vocal as possible in opposition to the changes, as much of the mortgage & real estate industry has been. Well today, FHFA rescinded their plan to implement this … (14 comments)
I was fortunate enough to join some fellow ActiveRainers this week and present some information on the recent Conventional loan LLPA changes. Since yesterday, I've continued to see some misinformation circulating around the changes, and thought it would be worthwhile to hold a quick webinar to cover fact VS fiction, and provide detail and insight into what changes are actually happening with conventional loan pricing.
Since the topic has grabbed some headlines in mainstream media, it's likely your current clients or future clients will have questions or … (14 comments)
fhfa: Biden's Conventional Loan Price Changes
- 04/21/23 10:44 AM
Changes to pricing for conventional loans are in the news as the proposed changes are set to take place in May. The reality is that these changes have already taken place, because they are effective for loans delivered to Fannie Mae or Freddie Mac in May. Loans closing in the next couple weeks will be the first to be delivered with the updated pricing, but due to the nature of a purchase contract period, many of these loans have been locked over the last 3-4 weeks. It's a bit surprising to see the uproar today about this topic, as the news of this change came out … (50 comments)
fhfa: $1 Million Conventional Loans? They're here.
- 11/29/22 12:08 PM
Conventional loan limits for 2023 were announced today by FHFA, and while the numbers weren't too surprising, one number that stands out is that the high cost area threshold for conventional loans has exceeded $1 million.
This is important because in many high priced markets, down payment is a major hurdle to potential home buyers - think about it. On a $400,000 home, a 5% down payment is $20k. That same home in a high priced market like the bay area could easily be $1.2 million, and that same 5% down payment is $60,000.
Prior to these loan limit increases, many borrowers were … (1 comments)
Recently I blogged about the coming conventional loan limit increases planned for 2016. There were plenty of counties in a handful of states that saw improvements in allowable loan amounts, but a lot of people seemed to be wondering why their areas didn't see the same increases, or more.
Particularly here in California, Orange County, the LA market, and the Bay area have seen a ton of home appreciation this year, so it would reason these areas should have seen loan limit increases. Alas, they did not. While some hot markets … (5 comments)
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