FHFA delays implementation of LLPA DTI fees
The FHFA announced that it would delay the implementation of a controversial upfront fee on Fannie Mae and Freddie Mac borrowers with higher debt-to-income ratios.
The FHFA announced that it would delay the implementation of a controversial upfront fee on Fannie Mae and Freddie Mac borrowers with higher debt-to-income ratios.
EDITORS’ PICKComplimentary access to top ideas and insights — curated by our editors. If President Joe Biden really wants to win reelection in 2024, he should leave the mortgage industry in peace and find somebody else to torment. Progressives of course love to raise taxes, but not all taxes are overt and explicit. When government … [Read more…]
Operational and quality control issues The industry leader stated that the DTI ratio is not a strong indicator of a borrower’s ability to repay, and an LLPA based on this ratio would cause difficulties in compliance and bring added complexity to the loan application and underwriting process. “MBA is particularly concerned about the addition of … [Read more…]
The FHFA’s new LLPA rules threaten the very fundamental approach to pricing based on risk and could open the door for a variety of forms of price tinkering in the future, Dave Stevens argues.
The Federal Housing Finance Agency has opted to make desktop appraisals permanent, having first introduced them as a temporary measure in March 2020. Desktop appraisals, as the name suggests, are an appraisal of a homeâs value thatâs done entirely at the appraiserâs desk. So thereâs no traveling to the home, no inspection, no measuring. Rather, […]
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Regulators are gearing up to take a closer look at the “byzantine” regulatory structure overseeing the real estate appraisal profession. During a hearing on appraisal bias on Tuesday morning, Consumer Financial Protection Bureau Director Rohit Chopra turned the spotlight on the profession’s rulemaking entity: the Appraisal Foundation Chopra noted that the small nonprofit writes the … [Read more…]
Mortgage and real estate trade groups say tweaks to loan level pricing adjustments (LLPAs) will hurt most borrowers in an already brutal market.