![]() ![]() Take Our Poll: Would You Move for a Job That Paid You a $10,000 Signing Bonus? FHFA Refutes Allegations That High-Risk Buyers Will Benefit From New Rules ![]() “To do this at the onset of the spring market is almost offensive to the market, consumers, and lenders.” “This confusing approach won’t work and more importantly couldn’t come at a worse time for an industry struggling to get back on its feet after these past 12 months,” David Stevens, a former commissioner of the Federal Housing Administration during the Obama administration, wrote in a social media post. The fear among some housing experts is that the new rules will make an already challenging market even more challenging for homebuyers. The Federal Housing Finance Agency (FHFA), which oversees Fannie Mae and Freddie Mac, has long sought to give consumers more affordable housing options, Fox News reported. The goal is to support federal initiatives to increase affordable housing across the country. High-credit consumers with scores ranging from 680 to above 780 will see a spike in mortgage costs, The New York Post reported, with the biggest increases being felt by those who put 15% to 20% down on a home.Īccording to media reports, the new LLPAs essentially amount to fees imposed on borrowers with high credit scores as a way of subsidizing those with low credit scores. It could impact mortgages from private banks across the nation based on loan-level price adjustments (LLPAs) established by Fannie Mae and Freddie Mac. The rule goes into effect on just ahead of the peak spring buying season. Under the rule, homebuyers with a credit score of 680 or higher will reportedly have to pay about $40 per month more than people with worse credit when taking out a home loan of $400,000, according to NewsNation, which cited a report from The Washington Times. See: 10 US Cities With Plenty of Jobs and Cheap Housingįind: How To Build a Financial Plan From Zero Thompson casts doubt on these allegations, complicating matters. However, a recent letter from FHFA director Sandra L. Americans who have worked hard to build up their credit scores might be alarmed over warnings that a new federal rule could reward those with lower credit at the expense of those with higher credit. ![]()
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