IMPORTANT ANNOUNCEMENT REGARDING AGENCY RISK BASED PRICING
In an effort to more accurately price risk for mortgage loans, the "Agencies", Fannie Mae and Freddie Mac have announced new risk-based pricing guidelines. These new Guidelines are being implemented over the next few weeks as Lenders and Wholesalers distribute the new rules. This will effect all Conforming Conventional loans.
New loan level price adjustments:
Credit Score Price Adjustment
Below 620 (or missing credit score) - 2.00%
620-639 - 1.75%
640-659 - 1.25%
660-679 - 0.75%
This could mean a significant rate increase for your clients in the coming months. A great alternative for your buyers with small or no down payments is the good old FHA. The rates have been as good or better than Conforming Conventional pricing and the credit requirements are greatly reduced when compared to Conventional. HUD has not notified lenders of an increase to the max loan amount, but that should be coming sometime in January.
I would be happy to answer any of your questions.
Scott D. McKay
Lakeland Mortgage Corporation
8300 Norm Center Drive
Suite 240
Bloomington, Mn. 55347
612-875-4338
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