Rates are about to spike - Lock in. (loan, foreclosure, credit score)

[Pfhtex]

FHFA is adding a .5 hit (50 basis points in fees: .005 of the loan amount added to cost) to all refinances.

https://www.cnbc.com/2020/08/13/mort...aise-fees.html

[mortgageboss]

we're hearing the same thing this morning.

[aslowdodge]

So is this including loans in process or just those starting applications on sept 1?

[Mr. Zero]

Originally Posted by Pfhtex

FHFA is adding a .5 hit (50 basis points in fees: .005 of the loan amount added to cost) to all refinances.

https://www.cnbc.com/2020/08/13/mort...aise-fees.html

Will these fees also be applied to jumbos?

[Pfhtex]

It's Fannie/Freddie, so it's conforming loan amounts. Also it's only on refinances.

I think it's equal parts "oh [darn] x number of people are going to go into foreclosure after the forbearance bailout ends" and "hey let's take a little action for ourselves here while it's hot."


Whereas I could do 2.25% on a 15 year with no points on Tuesday, this morning I'm 75 basis points higher, meaning I need .75 in Discount to get there. My no-discount Low is now 2.500%.

[aslowdodge]

Great, I have 5 refinances in process now.

[1ondoner]

It looks like they are punishing borrowers in good standing because of delinquencies


FHA Mortgage Delinquencies Reach a Record

Originally Posted by Pfhtex

FHFA is adding a .5 hit (50 basis points in fees: .005 of the loan amount added to cost) to all refinances.

https://www.cnbc.com/2020/08/13/mort...aise-fees.html

[aslowdodge]

Originally Posted by 1ondoner

It looks like they are punishing borrowers in good standing because of delinquencies


FHA Mortgage Delinquencies Reach a Record

Naw, just recouping some of the money they lost from forebearance by taking it from borrowers.

[SmartMoney]

I really can't believe no one did more than shrug with an "oh, well, so it happened again." Precious few took the time to email their Senator or Congressman to remind them the American people did the largest bailout of Fannie and Freddie during the mortgage crisis. It was in that crisis the Loan Level Pricing Adjustments were born. They were supposed to go away when the market recovered (just like we were told credit scores would never be used to decline a loan), but only the Adverse Market Refinance Fee went away.

Taxpayers propped up these two giants and they went on to be more profitable than before the crisis. In fact, they went on to make so much money for the government, all talks of 100% privatizing them both quickly ceased.

So, now in a pandemic, when the citizens of this country are at their weakest, both Fannie and Freddie are going to make certain while millions of businesses fail, they will prosper on the backs of others.

<rant off>

[Gaylord_Focker]

Music to my ears.