Florida, Fannie Mae and the Wild West! As you can imagine, I monitor all sorts of financial charts, graphs, and stats as they relate to mortgage rates and the impact they will have on my clients. And sometimes you read new data that sends a Starbucks Mocha Grande size surge through your veins…that’s when you see a big number on a little LLPA (Loan Level Price Adjustment) table.
This latest insanity matrix is basically showing that the cost of borrowing money has just increased again. And it is no longer the higher risk clients (the ones with the lower credit score and challenged credit history); we’re talking about our home buyers with an 800 FICO who are putting 20% down who are the ones getting hit with higher fees.
So because Fannie Mae is now hurting for money, they’re increasing their costs. So the borrowers who are on higher ground now probably need to pony up a 25% down payment to compensate for the fees and the shame of an 800 FICO.
And in addition to this travesty, the instrument our Fannie Friends are using to perpetuate this latest infraction of civility is yours truly and other mortgage lenders by making us put on the black hats and knock the townspeople around with these inflated costs.
At the end of the day, it’s still us against them. I’m on your side and we’ll get through it as we watch Fannie Mae saddle up and don bandannas to hide the guilt as they replenish their treasure chest.