The Federal Housing Finance Agency will eliminate certain upfront loan-level price adjustments while implementing “targeted” increases for most cash-out refinance transactions. The agency also approved two new credit scoring models for Fannie and Freddie.
The private pow-wow revealed broad agreement between government, industry and advocacy groups on how to deal with the nation’s affordable housing shortage.
Lenders say the 15-bp surcharge on broker loans penalizes low- and moderate-income borrowers and flies in the face of the principle of the level playing field.
Fee-for-service partnerships between mortgage lenders and housing counseling agencies could bring scale to the pre-purchase counseling services HCAs offer, according to industry experts.