Price Adjustments coming soon to Conforming Mortgages

January 24, 2023 by Leave a Comment

Last week, the FHFA (Federal Housing Finance Agency) announced changes to how conforming mortgages are priced with loan-level price adjustments (LLPAs). Some borrowers will find improved pricing where others will have to pay more in fees. The fees are typically incorporated into the interest rate for the mortgage.

From Fannie Mae’s Lender Letter dated January 19, 2023:

“We are implementing additional changes to our LLPA framework that represent the next step in our effort to increase support for borrowers historically underserved by the housing finance market…”.

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Filed Under: Fannie, Freddie and FHFA, First Time Home Buyer, Home Possible, HomeReady, Interest Rates Tagged With: , , , , , , ,

Fannie Mae to increase minimum down payment in November

August 22, 2013 by 1 Comment

Fannie Mae is scheduled to update their automated underwriting system (aus) Desktop Underwriter (DU) to DU Version 9.1 on November 16, 2013.  In their release notes from August 20, 2013, Fannie Mae reveals that for they will increase the minimum down payment from 3% to 5% for Fannie Mae conventional loans.

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Filed Under: Fannie, Freddie and FHFA, Residential Purchase, Underwriting and Qualifying Tagged With: , , , , , ,

Private Mortgage Insurance Termination

June 2, 2009 by 2 Comments

Private mortgage insurance (pmi) is used when a borrower has less than 20% down or home equity in their property.  PMI insures the lender in the event of a borrower defaulting on a mortgage–it does not provide insurance to the home owner.

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Filed Under: Mortgage Insurance Tagged With: , , ,