Posted To: Pipeline Press

Seattle will hit 110 degrees F today. Change is afoot. Last week changes of personnel within the CFPB and the FHFA (hence Fannie & Freddie) captured our industry’s attention since they may lead to eventual changes in their footprint or policies. (But the FHA’s program changes, spelled out below, are worth noting.) For decades stability, liquidity, and transparency have been, more or less, provided by the Agencies. Currently that has become debatable. Lenders know that if products are shifted to private label pricing and execution, borrowers will see a direct price hit. Risk must be aligned to price. For example, every lender knows that plenty of NOO and 2nd home borrowers are of a higher quality, and lower risk, than many owner occupied or primary residence borrowers. Those…(read more)

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Source: Mortgage News Daily