The 10 bps is passed onto the borrower in the form of a higher note rate. Trade group officials argue that wealthy homeowners generally do not use GSE loans, so they're exempt from the fee.
In April, the government had proposed extending the effective date of the final rules by 60 days to allow stakeholders affected by the pandemic more time to review and implement the requirements but public comments did not support an extension, the CFPB said. Most industry commenters said they would be ready to comply by Nov. 30.
Multiple lenders tell Inside Mortgage Finance that, in late March, the enterprises began rejecting loans that would have been easily approved in early March.
Nevertheless, rumors are circulating that the Biden administration is preparing to test the legal waters by having the FHA and VA extend their REO eviction moratoriums to the end of the year. These were also scheduled to end on Saturday. If that were to happen, most observers believe FHFA would follow suit.
Rob Zimmer, head of external communications for CMLA, described it this way: "It’s a terrible policy idea, given that only the middle class pays it. Wealthy households paying cash for homes or using jumbo mortgages won’t pay a dime."
The Supreme Court remanded a portion of the case, leaving it for the Fifth Circuit Court of Appeals to decide how to handle the question of whether the unconstitutional nature of FHFA’s leadership structure damaged shareholders and, if so, what kind of compensation they might be owed.
The changes are being pursued in response to the agency receiving “more than 10,000 questions per year from people trying to understand the deposit insurance rules,” the FDIC chief said.
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