When Fannie first introduced loan level pricing adjustments back in 2008 it was a rush to lock all your loans. Your 620 borrower was no longer able to receive the same rate, in the same program, with the same loan amount as your 740 borrower. As if those in the mortgage industry haven't already over come a lot recently such as HVCC, many states requiring licensing, tougher underwriting and possible new compensation laws Fannie Mae has decided to add to it.
Just because rates are low doesn't mean you qualify for those low rates. With the new loan level pricing even borrowers who refinance or purchase, have a 720 credit score and are putting 24.99% or have that in equity will go from a .000 pricing adjustment to a .500!
So if you've been thinking about buying or refinancing you may want to lock in soon. Many banks already have the new pricing effective Monday January 3rd but Fannie won't start requiring it on their mortgages delivered until April 1st. Below are the new changes:
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